An increase in consumption, combined with an increase in exports, would have what effect on aggregate demand?
A. AD would increase
B. AD would decrease
C. AD would stay the same
D. AD could either increase or decrease, depending on which change was of greater magnitude
Ans: A. AD would increase
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Of the four sources of external funding for nonfinancial businesses, the least often used in the U.S. is
A) bank loans. B) nonbank loans. C) bonds. D) stock.
During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. The benefit of attending college is lower because college graduates are less likely to find jobs. B. The opportunity cost of attending college is higher when unemployment is high. C. The opportunity cost of attending college is lower when unemployment is high. D. Students go to college even when the net benefit is negative.
Examples of command economies are:
A. the United States and Japan. B. Sweden and Norway. C. Mexico and Brazil. D. Cuba and North Korea.
In the above figure, along which range would the demand for this good be most elastic?
A. between point c and point d B. between point d and point e C. between point a and point b D. at point e