The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve.
B) This will move the economy up along a stationary aggregate demand curve.
C) This will shift the aggregate demand curve to the left.
D) This will shift the aggregate demand curve to the right.
C
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A gold standard is: a. a measurement of the importance of a good; it indicates high quality
b. the basis for monetary exchange internationally. c. an internationally recognized means for defining currency exchange rates. d. a system where currency (e.g., the dollar) was defined as equivalent in value to a certain amount of gold.
Changes in expenditures and taxes that occur through automatic stabilizers
A) shift the aggregate demand curve to the right in the event of an economic expansion. B) shift the aggregate demand curve to the left in the event of an economic contraction. C) do not shift the aggregate demand curve. D) cause a movement up along the aggregate demand curve the event of an economic expansion and a movement down along the aggregate demand curve the event of an economic contraction.
The extra amount of output a business can generate by adding one more hour of labor is called
A. marginal cost. B. labor input. C. marginal product. D. marginal revenue.
Which of the following is TRUE regarding a collusive agreement? I. It is illegal in the United States. II. Two or more producers agree to restrict output or raise prices. III. Firms' profits are never maximized under this sort of agreement
A) I and II B) I and III C) II and III D) I, II and III