Suppose an Economy Is in Equilibrium

question 86

Multiple Choice

Suppose an economy is in equilibrium. Also suppose that consumer expectations change as the threat of war increases the likelihood of an increase in taxes. This would result in:

• A) an increase in equilibrium income.
• B) no change in equilibrium income.
• C) a downward shift of the aggregate supply curve.
• D) a decrease in equilibrium income.
• E) a change in the slope of the aggregate supply curve.

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Definitions:

Dietary Behavior Change

A modification in eating habits or choices, often aimed at improving health or achieving specific nutrition goals.

DASH Food Plan

A dietary approach to stop hypertension, emphasizing fruits, vegetables, whole grains, and lean proteins to lower blood pressure.

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives.

Social Pressures

The influence that is exerted on a person or group by another person or group, encouraging them to change their behaviors, values, or beliefs to conform to those of the influencing group.