1. What effect would a decrease in consumer savings have on the aggregate demand curve?
The curve would level off.
The curve would shift to the right.
The curve would shift to the left.
The curve would not change
2. If there is an increase in aggregate supply with no corresponding increase in aggregate demand,
real GDP decreases, and the price level goes down.
real GDP increases, and the price level goes down.
real GDP decreases, and the price level goes up.
real GDP increases, and the price level goes up.
Economics - economyst, Saturday, September 19, 2009 at 3:02pm
Take a shot, what do you think?
Hint. Draw a supply and demand graph. for 1) if consumers save less, they must be spending more. How is this represented with demand. For 2, if supply increases, what happens to P, what happens to Q?