Which of the following would most likely shift the aggregate demand curve to the right?
A. An increase in stock prices that increases consumer wealth.
B. Increased fear that a recession will cause workers to lose their jobs.
C. An increase in personal income tax rates.
D. A reduction in household borrowing because of tighter lending practices.
A. An increase in stock prices that increases consumer wealth.
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Consider a consumer with a choice set that emerges from an exogenous income I. Suppose that, as a result of changes in a consumer's economic circumstances, the budget line rotates outward, with the vertical intercept remaining unchanged but the horizontal intercept shifting to the right. How could this have happened if the price of the good on the horizontal axis did not change?
What will be an ideal response?
If the economy is producing ________, unemployment is at its natural rate
A) at an unemployment rate of zero B) at an inflation rate of zero C) at potential GDP D) above potential GDP
What is the real GDP after four years if Country X's average annual growth rate is 8.6 percent and the initial real GDP was $2,756.0 million?
A) $2,993.0 million B) $3,833.5 million C) $1,077.5 million D) $3,250.4 million
Explain the theory of investment in human capital and the specific role that education plays in the theory