ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
1
Based on the figure, which of the following would cause the aggregate demand curve to shift from AD1 to AD2? There is a reduction in income tax rates. Stock market values decrease by 20 percent. There is a reduction in consumer confidence about future growth in the economy. There is an increase in the price of oil. There is an increase in the general price level that reduces real wealth.
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Transcribed Image Text:Based on the figure, which of the following would cause the aggregate demand curve to shift from AD1 to AD2? There is a reduction in income tax rates. Stock market values decrease by 20 percent. There is a reduction in consumer confidence about future growth in the economy. There is an increase in the price of oil. There is an increase in the general price level that reduces real wealth.
Price level (P) LRAS, LRAS2 SRAS, A E B SRAS2 F C AD2 AD1 Real GDP (Y)
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Transcribed Image Text:Price level (P) LRAS, LRAS2 SRAS, A E B SRAS2 F C AD2 AD1 Real GDP (Y)
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