Which one of the following factors will most likely cause an increase in aggregate demand?
a. An increase in net exports.
b. An increase in the real interest rate.
c. A decrease in net exports due to falling incomes abroad.
d. A technological development that decreases the cost of producing computer chips.
a
You might also like to view...
A meditation class meets on the second floor of a building; the first floor is a nightclub. The loud music from the club disturbs the classes. Which of the following best explains why the negative externality faced by the class arises?
a. The class has no property right to a quiet environment. b. The club has a property right on the ground floor. c. The class has a property right on the second floor. d. The club uses an inappropriate technology (i.e., no soundproofing). e. Both the club and class are profitable.
Which of the following explains the downward slope of the aggregate demand curve?
a. disposable income remains unchanged when prices rise. b. higher domestic prices encourage exports and discourage imports. c. higher prices reduce the household’s real wealth. d. All of these.