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Aggregate demand measures the nation's total demand for goods and services. Greater demand will shift the curve up and to the right (when supply plotted
Aggregate demand measures the nation's total demand for goods and services. Greater demand will shift the curve up and to the right (when supply plotted on x-axis and demand on y-axis) and lower demand will shift it to down and to the left. Which of the following would contribute to a falling aggregate demand (downward shift in the curve)? (1) Less availability of consumer credit (i.e., higher interest rates) (2) Greater government spending (3) Lower disposable income (4) Rising energy prices (5) Lower unemployment (6) Higher level of investment by corporations O 4, 5 and 6 O2, 5 and 6 O 1, 2 and 5 O 1, 3 and 4 Which of the following statements regarding supply and demand is incorrect? The market's equilibrium price is the point of intersection between the supply and demand curves. O If the supply curve shifts to the right (greater supply) and the demand curve moves to the left (lower demand), the market price of the good will drop. O If the demand curve drops (moves to the left) and the supply curve remains unchanged, then the price of the good will rise. O Entire shifts in the demand curve to the right may occur as a result of changes in consumer preferences, higher income, less uncertainty about the future or lower prices
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