Greater wealth makes people _____________ willing to spend on consumption, causing __________ the economy's AD curve
A) more; movement down along
B) more; a rightward shift of
C) less; movement up along
D) less; a rightward shift of
B
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What happens if we internalize a negative externality?
a) Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced. b) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced. c) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced. d) Internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced.
The number of job seekers in any sector of the economy ordinarily exceeds, by at least a small amount, the number of jobs available. Thus, employers
A) could increase their net revenue by lowering wages. B) could increase their net revenue by raising wages. C) do not pay close attention to marginal cost and marginal revenue in setting wages. D) face the threat of unionization. E) want employees to value their current jobs significantly more highly than they value alternative jobs.