Refer to Figure 7-1. What could have caused a movement from point A to point D?
A) Technological advancement
B) An increase in the inflation rate
C) An increase in household wealth
D) A recession in foreign countries
Refer to Figure 7-1. A movement from point B to point E on could be due to
A) an increase in consumer confidence.
B) an increase in the market interest rate.
C) an increase in personal income taxes.
D) a decrease in transfer payments.
Refer to Figure 7-1. What could have caused a movement from point D to point A?
A) An increase in the economy's general price level
B) A decrease in investment demand due to lower expected sales
C) A decrease in capital gains taxes
D) An increase in money supply that lowers interest rate
Refer to Figure 7-1. What could have caused the aggregate demand curve to shift to the right from AD1 to AD2?
A) An increase in exports
B) An increase in imports
C) A decrease in defense spending
D) An increase in the domestic price level