Refer to the graphs below. Which graph shows an increase in the prices of X and Y, but no change in the buyer's budget?

Which of the following would lead to an increase in aggregate demand?

a. an increase in consumer confidence b. a decrease in the overall price level c. an increase in input prices d. all of the above

New classical economists believe that:

a. market failure on a large scale is possible. b. disequilibrium in commodity markets demand government intervention. c. people are completely aware and informed about everything that is happening. d. wages are fixed in the short run. e. people purposefully substitute non-labor activities for work during recession.