Refer to the graph below. Which of the following factors will shift AD1 to AD2?
A. A decrease in the general price level
B. An increase in real interest rates
C. An increase in national incomes abroad
D. A decrease in the value of financial assets
C. An increase in national incomes abroad
You might also like to view...
Another benefit from entering a currency union that is not optimal would include:
A) the idea that economies interconnected in a currency union with increased trade also develop a symmetry of demand shocks. B) the reduction of interdependence and an increase in self-sufficiency. C) the cessation of disagreement over trade protection. D) the possibility of increasing the currency area.
Refer to the graph shown. If the market price is $4, a perfectly competitive firm:
A. earns a profit. B. incurs a loss but can still cover its variable costs and some of its fixed costs. C. incurs a loss and cannot cover its variable costs. D. breaks even.