Explain the difference between a change in demand and a change in quantity demanded. Be sure to specify what causes each to change and how they differ when graphed
A change in demand results from a change in one or more of the determinants of demand:
prices of related goods (substitutes and complements), income of buyers, number of buyers, expectations of future price, and preferences of buyers. When demand changes the entire demand curve shifts to the right (an increase in demand) or to the left (a decrease in demand). A change in quantity demanded results from a change in a good's own price and is shown on a graph by a movement along a given demand curve.
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Expansionary fiscal policy includes
A) increasing taxes and increasing government purchases. B) lowering interest rates, decreasing taxes and increasing transfer payments. C) decreasing taxes and increasing government expenditures. D) lowering the interest rates, decreasing taxes and decreasing government spending.
Suppose that personal income is $250 billion. Furthermore, assume that retained corporate earnings are $2 billion, social security taxes are $15 billion, social security benefit checks equal $16 billion, the capital consumption allowance is $32 billion, and corporate taxes amount to $40 billion. The national income of this nation will be:
a. $236 billion. b. $249 billion. c. $251 billion. d. $279 billion. e. $290 billion.