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6. According to the wealth effect, when prices decrease, the…

January 25, 2024

According to the wealth effect, when prices decrease, the purchasing power of assets _____ and consumer spending _____.

	A.	increases; decreases
	B.	decreases; decreases
	C.	decreases; increases
	D.	increases; increases

A tariff or quota will _____ prices and _____ the consumption of the protected goods in the importing country.

	A.	raise; decrease
	B.	raise; increase
	C.	lower; decrease
	D.	lower; increase

A general increase in wages will result primarily in the _____ curve shifting to the _____.

	A.	short-run aggregate supply; left
	B.	aggregate demand; right
	C.	short-run aggregate supply; right
	D.	aggregate demand; left

A negative supply shock often results in:

	A.	a leftward shift of the AD curve.
	B.	an increase in the aggregate price level and a decrease in aggregate output.
	C.	no change in the price level.
	D.	a drop in the unemployment level.

decrease, effect, Macroeconomics, prices, the.., wealth

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