Which one of the following factors will most likely cause an increase in aggregate demand?
a. an increase in the expected inflation rate
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
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Refer to the table above. If planned investment is $25 billion, then aggregate expenditures at the income level of $560 billion will be:
The data below are for a private (no government) closed economy. All figures are in billions of dollars.
A. $565 billion
B. $580 billion
C. $585 billion
D. $595 billion
If the supply of a good decreases and demand remains constant equilibrium price:
a. Will decrease, and equilibrium quantity will increase b. Will increase, and equilibrium quantity will decrease c. And quantity will decrease d. And quantity will increase