Which of the following would shift the AE2 curve back down to the position of AE1?
a. a decrease in the interest rate
b. an increase in real wealth
c. pessimistic economic expectations
d. optimistic consumer expectations
c. pessimistic economic expectations
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Which of the following pairs is the most likely to exhibit a direct relationship?
A. The price of gasoline and the amount of gasoline that people purchase. B. Cholesterol levels and the likelihood of developing heart disease. C. Outdoor temperature and heating oil sales. D. Annual income and weekly pawn shop visits.
Which of the following statements would John Maynard Keynes most likely agree with?
a. “All income generated from output is used to buy goods and services.” b. “Supply automatically creates adequate demand.” c. “Income is always spent in the period that it is produced.” d. “A decline in investment leads to insufficient total spending.”
An improvement in production technology will:
A. shift the demand curve to the left. B. shift the supply curve to the left. C. shift the supply curve to the right. D. increase equilibrium price.
A firm should hire workers up to the point where
A) MP = P. B) MFC = P. C) MFC = MRP. D) MP = MRP.