The AD curve can be shifted by:
A. monetary policy only.
B. neither fiscal nor monetary policy.
C. fiscal policy only.
D. both fiscal and monetary policy.
Answer: D
You might also like to view...
If the compensated (Hicks) and Marshall demand curves for a good intersect, at that point the Marshall curve will be:
a. flatter if this is a normal good. b. steeper if this is a normal good. c. flatter if this is an inferior good. d. horizontal.
In which of the following situations will both market clearing price and the equilibrium quantity decrease?
A) an increase in demand and no change in supply B) an increase in supply with no change in demand C) a decrease in supply with no change in demand D) a decrease in demand with no change in supply
The ________ part of a perfectly competitive firm's marginal cost curve that is equal to or above points on its average variable cost curve is the firm's short-run supply curve.
A. horizontal B. declining C. backward bending D. rising
As long as marginal cost is below average cost, average cost will be:
a. falling. b. rising. c. constant. d. changing in a direction that cannot be determined without more information.