The aggregate demand curve shifts to the right when there is ________
A) a negative price shock
B) a decrease in the nominal interest rate
C) a decrease in inflation
D) all of the above
E) none of the above
E
You might also like to view...
Agreements among competing sellers to maintain prices and share markets
A) are usually unenforceable in court and illegal under many state laws and under federal law where applicable. B) are very common because they lead to economies of scale and hence greater efficiency. C) enable all sellers to cover their sunk costs but do not guarantee that any seller will be able to cover marginal cost. D) usually result in greater total output but also in higher prices to consumers.
Which of the following are possible justifications for government redistribution of income?
a. The desire for a more unequal distribution of income. b. Charity is a collective consumption good and thus might be underprovided. c. Redistribution acts as insurance against further coercion. d. Private redistribution of income merely shuffles money around the rich and upper-middle class.
Land used to grow corn could also be used to grow soybeans. Which of the following is true when the farmer plants soybeans and the market price of corn rises?
a. The opportunity cost of producing soybeans decreases. b. The opportunity cost of producing soybeans increases. c. There will be no change in the opportunity cost of producing soybeans. d. The opportunity cost of producing corn increases.
During the Great Depression in the 1930s, world prices of most primary products plummeted. This caused many countries to turn toward
A. exporting agricultural goods. B. exporting manufactured goods. C. import-substituting industrialization. D. importing manufactured goods.