Which of the following will shift the aggregate demand curve to the right?
A. Consumers become more optimistic about the future.
B. Income taxes are raised.
C. The government reduces purchases to balance the budget.
D. Foreign economies fall into recession, reducing their demand for domestic exports.
Answer: A
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A person holding dollar deposits during the devaluation of the dollar would
A) enjoy a monetary gain. B) see the foreign currency value of dollar assets increase by the amount of the exchange rate change. C) shift their wealth into domestic investments. D) suffer a monetary loss and see the foreign currency value of dollar assets decrease by the amount of the exchange rate change. E) see no change in their investments.
The amount of investment demand at each interest rate suddenly falls. If the Fed holds to an unchanged money supply target, the change in GDP is __________ if it had held to an unchanged interest rate target
A) greater than B) less than C) the same as
The marginal propensity to consume (MPC) is calculated by which formula?
A. MPC = change in DI divided by change in C B. MPC = change in GDP divided by change in DI C. MPC = change in C divided by change in DI D. MPC = change in C divided by change in GDP
When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, economists want to study
a. nominal GDP. b. real GDP. c. the GDP deflator. d. GNP.