A recent decline in interest rates made home construction more affordable for many families. The consequent increase in construction produced a rightward shift in the demand curves for construction materials. Economists would say that the change in demand for materials is due to

The diagram that represents how income is distributed among members of a population is known as a(n):

a. indifference curve. b. Laffer curve. c. Edgeworth box. d. Lorenz curve. e. Phillips curve

When the value of the dollar increases, the net effect on the economy

A. will be an increase in both aggregate demand and aggregate supply. B. will be decrease in short-run aggregate supply and an increase in aggregate demand. C. will be an increase in short-run aggregate supply and a decrease in aggregate demand. D. will be a decrease in both aggregate demand and aggregate supply.