Which of the following is likely to cause the demand curve for cars to shift to the left?
A) A rise in the price of gasoline
B) A rise in the price of cars
C) An increase in the economy's national income
D) An increase in the cost of production leading to an increase in the price of cars
Question 2
The open economy effect refers to the fact that
A) the position and shape of the long run aggregate supply curve is partially due to the fact that we import goods.
B) the slope of the aggregate demand curve is partially explained by the reduction in the desire to buy fewer U.S. goods by U.S. residents and foreign residents as a result of a higher price level.
C) the immigration policies of the United States are disruptive to labor markets.
D) the aggregate supply curve shifts when the economy grows.
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