Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending 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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If the price of inputs rises and personal income taxes rise:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand and aggregate supply fall. d. Neither aggregate demand nor aggregate supply change. e. None of the above.
Other things equal, which may cause an increase in the price of used houses?
a. An increase in construction costs for new houses b. An increase in property taxes c. An increase in mortgage interest rates d. A decrease in the population of first-time homebuyers
The decline in new business startups
A) is not concentrated in one industry. B) is concentrated primarily in high-tech industries. C) is concentrated primarily in health care industries. D) is concentrated primarily in public service industries.
Returns to scale refers to the change in output when
A) all inputs increase proportionately. B) labor increases holding all other inputs fixed. C) capital equipment is doubled. D) specialization improves.