Which of the following will not shift the aggregate demand curve to the left?
A. Consumers become more optimistic about the future.
B. Government spending decreases.
C. Business optimism decreases.
D. Consumers become pessimistic about the future.
Answer: A
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When the supply curve is flat, a tariff on imported goods
a. always increases the welfare of Americans. b. always decreases the welfare of American.. c. has no effect on the welfare of Americans. d. only affects the welfare of Americans if the goods are also made domestically .
Owners of men's clothing stores traditionally discriminate against males when making hiring decisions because they believe that male customers are more eager to buy clothing from female associates. In reality, however, one's sex does not affect one's sales (i.e., one's sex does not affect one's productivity). Discrimination of this sort throughout the labor market has resulted in clothing stores paying male associates lower wages than they pay female associates. A new men's clothing store enters the industry without these prejudicial beliefs. Which of the following outcomes is not likely to come about?
A. The new store will likely have lower prices than existing stores. B. The new store will make greater profit than it would if it would hold similarly biased views. C. The new store will have lower per-employee labor costs than existing stores. D. The new store will have to hire female associates to compete with its competition. E. The new store will hire more male associates than the typical existing store.
International outsourcing-the shifting of service activities from one country to another-was not an issue when the factor-price equalization theory was developed. Does the existence of outsourcing change the implications of the theory? Justify your answer.
What will be an ideal response?
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease