If people feel optimistic about the future of the economy ________
A) autonomous consumption might increase
B) autonomous investment might increase
C) it might shift the IS curve to the right
D) all of the above
E) none of the above
D
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The president of a company is told that the fixed costs next year will be higher than anticipated. Even so he has told his operations managers that this should not affect their production levels. Comment on this statement
What will be an ideal response?
Rapid increases in military spending by the federal government without accompanying increases in real output could be a cause of cost-push inflation
a. True b. False Indicate whether the statement is true or false
Income:
A. is a stock concept. B. consists of accumulated assets. C. is a flow concept. D. consists of wages only.
Suppose the Asian financial crisis decreased U.S. exports. In the aggregate demand/aggregate supply model, this would be represented as
A) a shift to the right of aggregate supply, which would result in more production for the U.S. economy. B) a shift to the left of aggregate supply, which would result in less production for the U.S. economy. C) a shift to the right of aggregate demand, leading to more spending and production in the U.S. economy. D) a shift to the left of aggregate demand, leading to less spending and production in the U.S. economy.