Answer
Option B
the consumer expectations about future improve increases aggregate demand and shifts the AD curve to right which increases price and real GDP.
Suppose that consumer expectations about the future improve. How will this affect the aggregate demand curve?...
If firms' expectations about the future become pessimistic so that they think future profits will be lower, then A. aggregate demand decreases and the AD curve shifts leftward. B. the aggregate demand curve does not shift but potential GDP decreases. C. aggregate demand increases and the AD curve shifts rightward. D. the quantity of real GDP demanded decreases and there is a movement up along the AD curve. E. the quantity of real GDP demanded increases and there is a...
In the AD–AS diagram, an increase in money supply growth causes: a shift of the aggregate demand curve to the left. a shift of the aggregate demand curve to the right. a downward movement along the aggregate demand curve. an upward movement along the aggregate demand curve.
If the price level increases, then O A. the aggregate demand curve will shift to the left. O B. the aggregate demand curve will shift to the right. O C. there will be a movement up along a stationary aggregate demand curve. O D. none of the above will occur.
When the price level increases, aggregate planned expenditure decreases, which leads to A. a rightward shift of the aggregate demand curve. B. a leftward shift of the aggregate demand curve. C. an upward movement along the aggregate demand curve. D. a downward movement along the aggregate demand curve. E. neither a movement along nor a shift of the aggregate demand curve.
Indicate which of the following will cause a movement along a demand curve. Which will shift the demand curve to the left? Which will shift the demand curve to the right? Will demand increase or decrease? DRAG AND DROP TO MATCH. MATCH LETTERS TO NUMBERS e.g. 1A, 2B, 3F, 4C, 5E 1. An increase in the price of the good 2. An increase in income for a normal good 3. A decrease in the price of a substitute good 4....
34. An increase in consumer saving for any given level of income will shift the: A) LM curve upward and to the left. B) LM curve downward and to the right. C) IS curve downward and to the left. D) IS curve upward and to the right. 35. An increase in the money supply shifts the ______ curve to the right, and the aggregate demand curve ______. A) IS; shifts to the right B) IS; does not shift C) LM:...
Concept Check Question 1.2 If the price level increases, then O A. the aggregate demand curve will shift to the left. O B. the aggregate demand curve will shift to the right O C. there will be a movement up along a stationary aggregate demand curve. O D. none of the above will occur.
Demand for gasoline today is given by Q 0.13N+ 1500PE-3PG N is average consumer income, PE is consumers' expectations of tomorrow's price of gas, and PG is the current price of a litre of gas. a) What is the equation for demand when income is $40,000 and the expected price is $1.20 per litre? b) Suppose there is a news report that gas prices are going up to $1.40 per litre at midnight. What is the new demand equation? What...
An expected increase in the prices of consumer goods in the near future will: Decrease in the quantity of real output demanded (or movement up along AD) Increase in the quantity of real output demanded for movement down along AD) Decrease (or shift left) in aggregate demand now Increase (or shift right) in aggregate demand now Previous Next →
Question 89 An increase in the price level will ________. A. shift the aggregate demand curve to the left B. shift the aggregate demand curve to the right C. move the economy up along a stationary aggregate demand curve D. move the economy down along a stationary aggregate demand curve BAM223 - PRINCIPLES OF ECONOMICS