What role can confidence and fear play in the economy?
A. Confidence and fear can shift the AD curve inward but not outward.
B. Confidence and fear can shift the AD curve outward and inward, respectively.
C. The impact of confidence and fear has not been effectively incorporated into macroeconomic models.
D. Confidence and fear can shift the SRAS upward and downward, respectively.
Ans: B. Confidence and fear can shift the AD curve outward and inward, respectively.
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Assuming a long-run aggregate supply curve, a decrease in consumer confidence results in ________ in output and ________ in price level
A) a decrease; no change B) a decrease; a decrease C) an increase; no change D) no change; a decrease
Which of the following is most likely the most beneficial form of monopoly advantage?
A) better production methods B) input hoarding C) decreasing returns to scale D) government protection
In economics, physical capital includes
A) money. B) bank accounts. C) machinery. D) shares of stock.
Which of the following is a reason behind low standards of living in developing countries?
a. High human and physical capital per worker b. Low human and physical capital per worker c. Low birth rates d. High tax rates e. Low public expenditure