Multiple Choice
Exhibit 14-1
-Refer to Exhibit 14-1. Which of the following would be illustrated by a shift in aggregate demand from AD0 to AD2?
A) an increase in investment, combined with an increase in imports
B) a reduction in business expectations, combined with the imposition of new tariffs by major trading partners
C) the discovery of new profitable technological investment opportunities, combined with inventory levels that have fallen below desired levels
D) faster growth rates by a major trading partner, combined with an increase in stock market wealth
Correct Answer:

Verified
Correct Answer:
Verified
Q4: Ceteris paribus, which of the following would
Q5: In the analysis of the interest rate
Q6: The short-run aggregate supply curve is drawn
Q7: Aggregate demand includes:<br>A)the demand for intermediate goods
Q8: A decrease in the U.S. price level
Q10: An increase in business tax rates, combined
Q11: Aggregate demand does not include:<br>A)Purchases of intermediate
Q12: Cost-push inflation is caused by:<br>A)an increase in
Q13: The economy is in long-run equilibrium only
Q14: A reduction in the price level will