Suppose the U.S. was to experience a series of terrorists' attacks aimed at keeping consumers away from large shopping areas. Supposing further that the primary effect is for consumer confidence to decrease, this would likely
A. decrease aggregate demand.
B. increase aggregate demand.
C. decrease aggregate supply.
D. increase aggregate supply.
Answer: A
Economics
You might also like to view...
An oligopolist's demand curve is
A) identical to that of a perfectly competitive firm. B) vertical on a price-quantity diagram. C) unknown because a response of firms to price changes by rivals is uncertain. D) identical to that of a monopolistically competitive firm.
Economics
Delete
a. The monopolist undersupplies the market and charges too high a price. b. The monopolist is a revenue maximizer not a profit maximizer. c. A monopolist has little incentive to produce efficiently (at a low cost). d. All of the above are true.
Economics