Author Question: Which of the following is not true of all indifference curves? A) they slope downward B) the ... (Read 57 times)

fahad · **on:** Jun 30, 2018

Which of the following is not true of all indifference curves?

A) they slope downward
B) the point at which one indifference curve intersects another represents an optimal consumption basket
C) they are bowed toward the origin
D) they can intersect with a budget constraint one or more times

Question 2

Explain the differences between aggregate demand shocks and aggregate supply shocks.

What will be an ideal response?

ryansturges · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

B

Answer to Question 2

Aggregate demand shocks are changes which cause the aggregate demand curve to shift. Aggregate demand shocks cause expenditures to change. Aggregate supply shocks are changes which cause the aggregate supply curve to shift. Aggregate supply shocks cause costs of production to change.