If the price of inputs rises and foreign income rises:
a. Aggregate demand and aggregate supply rise.
b. Aggregate demand and aggregate supply fall.
c. Neither aggregate demand nor aggregate supply change.
d. Aggregate demand rises, and aggregate supply falls.
e. None of the above.
.D
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An increase in total planned real expenditures that is caused by a factor other than the price level will lead to the
A) aggregate demand curve shifting to the right. B) aggregate demand curve shifting to the left. C) aggregate supply curve shifting to the left. D) aggregate supply curve shifting to the right.
When the federal government installs a price support program that requires the government to purchase all of a good not bought in the private economy at the support price, the impact on total welfare is the
A) change in consumer surplus. B) change in consumer surplus + the change in producer surplus + the cost to government. C) change in consumer surplus + the change in producer surplus - the cost to government. D) change in consumer surplus + the change in producer surplus.