Refer to Figure 13-1. Ceteris paribus, a decrease in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
B
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Nominal GDP is GDP
A) using current market values. B) during a recession. C) minus depreciation. D) after adjusting for any price changes. E) that ignores depreciation.
The Federal Trade Commission Act declares that all of the following are illegal except which one?
A) deceptive acts or practices in or affecting commerce B) mergers C) unfair acts or practices in or affecting commerce D) unfair methods of competition in or affecting commerce
In response to the financial crisis which followed the housing bubble collapse, policy-makers feared stimulating demand would cause:
A. high inflation despite low economic growth and high unemployment. B. high inflation despite high economic growth and low unemployment. C. low economic growth despite low inflation and low unemployment. D. high unemployment despite low inflation and low economic growth.
An exterior painting company is contemplating buying a bigger truck and ladder. This is a
a. bad decision because average costs will be higher b. good decision because average costs will be lower c. long-run decision d. short-run decision e. bad decision because more fuel will be needed