When disposable income increases, consumption expenditure decreases by the same amount. does not change. also increases, and by an equal amount. also increases, but by less. also increases, and by more. Demand-pull inflation starts with a decrease in aggregate supply. a decrease in aggregate demand. an increase in aggregate demand. an increase in aggregate supply. an increase in potential GDP.
When disposable income increases, consumption expenditure decreases by the same amount. does not change. also increases, and by an equal amount. also increases, but by less. also increases, and by more. Demand-pull inflation starts with a decrease in aggregate supply. a decrease in aggregate demand. an increase in aggregate demand. an increase in aggregate supply. an increase in potential GDP.
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 14E
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When disposable income increases, consumption expenditure
decreases by the same amount.
does not change.
also increases, and by an equal amount.
also increases, but by less.
also increases, and by more.
a decrease in aggregate supply .
a decrease in aggregate demand.
an increase in aggregate demand.
an increase in aggregate supply.
an increase in potential GDP .
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