If a reduction in stock prices reduces the real wealth of Americans, the

a. aggregate demand curve will shift to the left.
b. long-run aggregate supply will shift to the left.
c. general price level will increase.
d. aggregate demand curve will shift to the right.


A

Economics

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The marginal propensity to save is 0.2. Equilibrium real GDP will decrease by $50 billion if aggregate expenditures schedule decrease by

A. $15 billion. B. $10 billion. C. $16 billion. D. $40 billion.

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In monopolistic competition, an increase in a firm's advertising

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