If consumers enjoy an increase in wealth due to stock market gains, which of the following combinations of events will mostly likely take place?
a. A downward shift of the aggregate expenditure line and a rightward shift of the AD curve
b. A downward shift of the aggregate expenditure line and a rightward shift of the AD curve.
c. An upward shift of the aggregate expenditure line and a leftward shift of the AD curve.
d. An upward shift of the aggregate expenditure line and a rightward shift of the AD curve.
e. An upward shift of the aggregate expenditure line and no shift in the AD curve.
D
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Oligopolies are difficult to analyze because
A) oligopolies are a recent development so economists have not had time to develop models. B) demand and cost curves do not exist for these types of industries. C) the firms are so large. D) how firms respond to a price change by a rival is uncertain.
Taxes that are designed to discourage consumption of the taxed good are called _____
a. regressive taxes b. head taxes c. sumptuary taxes d. sales taxes
Private markets are most likely to produce goods that are
a. neither rival nor excludable b. rival, but not excludable c. socially desirable, regardless of whether they are rival or not d. both rival and excludable e. rival, but not profitable
Suppose that in 2009 the total value of exports was $250 million, while imports were $225 million. The contribution of net exports to GDP was
a. $250 million b. $25 million c. $475 million d. $225 million e. -$25 million