The March 2000 "Tech Bubble" Burst Caused the Aggregate Demand

question 86

Multiple Choice

The March 2000 "tech bubble" burst caused the aggregate demand curve to shift to the left by ________.

• A)causing an upward spike in the real interest rate
• B)reducing autonomous spending by households and businesses
• C)reducing government spending on high-tech equipment
• D)all of the above
• E)none of the above

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Definitions:

Positive

Refers to an attitude, situation, or attribute that is constructive, beneficial, or optimistic.

Negative

Characterized by absence, lack, or denial; often used to describe attitudes, behaviors, or outcomes that are detrimental or undesirable.

Marginal Revenue

The extra revenue earned by selling an additional unit of a product or service.

Marginal Cost

The cost incurred to produce one additional unit of a product or service.