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
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Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point b represents
A) a decrease in quantity demanded. B) an increase in demand. C) an increase in quantity demanded. D) a decrease in demand.
Fill in the table.
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.
In monopolistic competition, an increase in a firm's advertising
A) has no effect on its average cost curves. B) has no effect on demand. C) increases the firm's average total cost. D) increases the firm's marginal cost.