If income rises in the market for a normal good, will the demand curve for the normal good shift to the right or to the left?
The demand curve will shift to the right.
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When recessions are the result of slowing growth in potential output, the government's best policy is to:
A. decrease aggregate supply. B. promote saving and investment. C. reduce government spending. D. increase aggregate demand.
What are the implications for economic growth for countries specializing in consumer goods rather than capital goods? Assume the countries consume what they produce
What will be an ideal response?
Total income received by households is called: a. national income
b. gross domestic product. c. personal income. d. gross national product.
If the expenditure multiplier is 2.5 and investment spending increases by $2,000 billion, what will be the change in GDP?
a. $2,000 billion b. $5,000 billion c. $571.4 billion d. $3,500 billion e. $7,000 billion