An increase in consumer spending caused by an increase in consumer confidence would cause
A) the aggregate demand curve to shift up and to the right.
B) the aggregate demand curve to shift down and to the left.
C) a movement down and to the right along the aggregate demand curve.
D) a movement up and to the left along the aggregate demand curve.
A
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________ emphasize(s) that changing expectations about the future is the main reason behind fluctuations in the economy
A) The real business cycle theory B) Keynesian theory C) Ricardian theory D) Monetary theories
Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output
How is this possible?
On the graph above, suppose the economy is at point F when there is a permanent positive supply shock. The new long-run equilibrium is at point ________
A) F B) H C) I D) G E) none of the above
A _____ puts the assets of two corporations under a common management
a. acquisition b. vertical integration c. merger d. proxy fight