The March 2000 "tech bubble" burst caused the aggregate demand curve to shift to the left by ________
A) causing an upward spike in the real interest rate
B) reducing autonomous spending by households and businesses
C) reducing government spending on high-tech equipment
D) all of the above
E) none of the above
B
You might also like to view...
The adverse effects of rent controls include
A) keeping rental rates too high in a normal market. B) excessive construction of new rental housing. C) reduced incentive to construct new rental housing. D) increased incentives for people to purchase their own homes.
Which of the following describes a situation in which demand must be inelastic?
a. Total revenue decreases by 10 percent when the price of jeans rises by 10 percent. b. Total revenue decreases by less than 10 percent when the price of jeans rises by 10 percent. c. Total revenue increases by more than 10 percent when the price of jeans rises by 10 percent. d. Total revenue decreases by $10 when the price of jeans rises by $10. e. Total revenue decreases by more than $10 when the price of jeans rises by $10.