Ceteris paribus, which of the following would you expect to have no effect on the demand curve for new automobiles?
A. An increase in the price of new automobiles.
B. Consumer expectations that the price of new automobiles will be lower next year.
C. Consumer expectations that a significant recession will develop and last for a year.
D. A rise in the price of gasoline.
Answer: A
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The three ways government can alter aggregate demand are:
A. Agriculture subsidies, science & technology subsidies, and education grants. B. Provide or deny food, clothing, and shelter. C. Nationalization of private businesses, institution of price controls, and Pigouvian taxes on externalities. D. Tax the Internet, close the bars, and ban football. E. Government spending, tax policy, and transfer of income
In the figure above, the natural unemployment rate is
A) 6 percent. B) 0 percent. C) 8 percent. D) 4 percent. E) 2 percent.