3. Draw a diagram for each part of this question, and determine whether the following events would shift the AD curve to the right, to the left, or not at all: a. Foreign income decreases. b. The exchange rate value of the dollar falls. с. Consumers expect lower income in the future. d. The distribution of income shifts toward wealthier families that purchase more imported goods. е. Home heating oil prices rise, so people switch to natural gas.

3. Draw a diagram for each part of this question, and determine whether the following events would shift the AD curve to the right, to the left, or not at all: a. Foreign income decreases. b. The exchange rate value of the dollar falls. с. Consumers expect lower income in the future. d. The distribution of income shifts toward wealthier families that purchase more imported goods. е. Home heating oil prices rise, so people switch to natural gas.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 10SCQ: Many financial analysts and economists eagerly await the press releases for the reports on the home...

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