Multiple Choice
Figure 7-6
-Refer to Figure 7-6. Suppose the economy is initially in short-run equilibrium at B. A shift from AD1 to AD2 could have been caused by all of the following except
A) an increase in consumer optimism.
B) economic prosperity in foreign economies.
C) a personal income tax cut.
D) an increase in the price level from Pa to Pb.
Correct Answer:

Verified
Correct Answer:
Verified
Q48: According to the wealth effect, if the
Q49: Using the aggregate demand-aggregate supply model, predict
Q118: Explain and discuss the difference between a
Q130: Figure 7-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Figure 7-1
Q131: Figure 7-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Figure 7-2
Q133: Figure 7-5 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Figure 7-5
Q136: Figure 7-3 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Figure 7-3
Q137: Figure 7-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Figure 7-7
Q149: To eliminate an inflationary gap, policy-makers may
Q162: A movement along the aggregate demand curve