Pessimistic consumer expectations and decreased government ...

[gbarreiro]

Pessimistic consumer expectations and decreased government spending are both associated with:
 a. a downward movement along the aggregate demand curve.
  b. an upward movement along the aggregate demand curve.
  c. a leftward shift of the aggregate demand curve.
  d. a rightward shift of the aggregate demand curve.
  e. a steeper slope of the aggregate demand curve.

Question 2

Economists need to develop abstractions in order to:
 a. avoid analyzing real-world economic interactions, which are too complicated to understand.
  b. distinguish normative economic behavior from positive economic behavior.
 c. avoid committing the fallacy of composition.
 d. understand and explain economic behavior.

[KKcool]

Answer to Question 1

c

Answer to Question 2

d

[gbarreiro]

Correct answers!

[KKcool]

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