A decrease in government spending initially and primarily shifts
a. aggregate demand to the right.
b. aggregate demand to the left.
c. aggregate supply to the right.
d. neither aggregate demand nor aggregate supply.
b
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Refer to Figure 28-9. A(n) ________ would be depicted as a movement from A to D to C
A) supply shock, such as rising oil prices, B) implementation of contractionary monetary policy C) increase in short-run aggregate supply D) increase in aggregate demand
A reduction in the price level will cause the aggregate demand curve to shift to the left
a. True b. False Indicate whether the statement is true or false
Pure monopoly is not studied because of its descriptive realism, but because it is a stepping stone toward more realistic models.
Answer the following statement true (T) or false (F)
Which of the following statements is correct?
A. If demand decreases and supply increases, equilibrium price will rise. B. If demand increases and supply decreases, equilibrium price will fall. C. If supply increases and demand decreases, equilibrium price will fall. D. If supply decreases and demand remains constant, equilibrium price will fall.