Refer to the Article Summary. The increase in consumer spending discussed in the article summary was due in part to increases in employment and lower energy prices, which lead to an increase in disposable income
The increase in consumption resulting from the increase in disposable income will cause a(n) ________ the aggregate expenditure curve.
A) movement down along B) upward shift of
C) movement up along D) downward shift of
C
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Suppose two companies, Macrosoft and Apricot, and considering whether to develop a new product, a touch-screen t-shirt. The payoffs to each of developing a touch-screen t-shirt depend upon the actions of the other, as shown in the payoff matrix below (the payoffs are given in millions of dollars). Suppose Apricot makes its decision first, and then Macrosoft makes its decision after seeing Apricot's choice. What will happen if, before Apricot chooses, Macrosoft announces that it is going to develop a touch-screen t-shirt no matter what Apricot does?
A. Apricot will develop a touch-screen t-shirt, and Macrosoft will not because Macrosoft's threat is not credible. B. Both Apricot and Macrosoft will develop a touch-screen t-shirt because neither company will want to back down. C. Neither Apricot nor Macrosoft will develop a touch-screen t-shirt because they will both realize that they are in a no-win situation. D. Macrosoft will develop a touch-screen t-shirt, and Apricot will not because it's not in Apricot's interest to develop a touch-screen t-shirt if Macrosoft also develops one.
Which of the following factors makes the success of economic integration more likely?
(a) Nationalism. (b) Desire for prestige projects. (c) Diverse economic systems. (d) All of the above. (e) None of the above.
Consider the two graphs above. Suppose that technological progress is expected to reduce the future cost of capital goods. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
At the current level of production, if the firm's marginal costs exceeds marginal benefits, then
a. The company should produce more b. The company is maximizing profit at this output c. The company is producing too much d. Not possible to determine