With respect to the aggregate demand curve, improved consumer confidence would
A. Shift the curve leftward.
B. Move the economy up along the curve.
C. Move the economy down along the curve.
D. Shift the curve rightward.
Answer: D
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Use the following supply and demand graph for product X to answer the question below. If there are positive externalities from the consumption of product X, then the socially optimal demand curve would be
A. an upward-sloping line. B. to the left of line D on the graph. C. at the position of line D on the graph. D. to the right of line D on the graph.
Economists consider an economy to be at "full employment" when
A) the unemployment rate equals the natural rate of unemployment. B) there is no structural unemployment. C) there is no frictional unemployment. D) there is only a small amount of cyclical unemployment.
Which of the following is an income number?
A. M1 B. M2 C. GDP D. Cash
If the government has no debt initially, but then has annual revenues of $20 billion per year for 4 years and annual expenditures of $20.5 billion per year for 4 years, then the government has
A. a budget surplus of $0.5 billion per year and a debt of $2 billion at the end of the 4 years. B. a budget deficit of $0.5 billion per year and a debt of $2 billion at the end of the 4 years. C. a budget surplus of $0.5 billion per year and a surplus of $2 billion at the end of the 4 years. D. a budget deficit of $0.5 billion per year and a budget surplus of $2 billion at the end of the 4 years.