If Consumers Buy a Large Number of Plug-In Electric Cars,the

question 239

Multiple Choice

If consumers buy a large number of plug-in electric cars,the equilibrium price of electricity will ________ and the equilibrium quantity of electricity will ________.

• A) rise; increase
• B) rise; decrease
• C) fall; increase
• D) fall; decrease
• E) not change; increase

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Definitions:

Aggregate Demand

The entirety of demand for products and services in an economy, pegged at a general price level during an established time frame.

Government Spending

The total amount of money that a government expends in a specific time period, which can include investments in infrastructure, welfare programs, and military expenditure.

Tax Receipts

The cumulative sum of taxes gathered by a government from both companies and individuals.

Recession

A span of transitory economic worsening, seen in lessened trade and industrial efforts, often marked by a fall in GDP for two straight quarters.