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"All for One, but None for All

Question 240

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"All for One, but None for All"
In an article regarding how Great Britain and France are addressing the economic crisis in 2008, Brit prime minister "is eager to encourage consumer spending" while France's president "wants to boo investment in both the private and public sectors." Both leaders are concerned because "hardly a da by without some manufacturing company announcing painful restructuring, plant closures or temporary lay- offs. "
HYPERLINK "http://www.ft.com/" www.ft.com, 11/24/200
If consumption and investment are increased by the governments' policies, we would expect a the short- run Phillips curve.


A) movement down along the AD curve; movement down along
B) increase in aggregate demand; rightward shift of
C) increase in aggregate demand; movement up along
D) movement up along the AD curve; rightward shift of

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