If Every Household in Australia Won a Lottery Which Gave

question 22

Multiple Choice

If every household in Australia won a lottery which gave each of them an extra $50 000 to spend, the:

• A) aggregate supply curve would shift to the right.
• B) aggregate supply curve would shift to the left.
• C) general price level would rise, causing a movement up the aggregate demand curve.
• D) aggregate demand curve would shift to the right in the short-run.

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Definitions:

Algorithms

Precise rules or procedures that are systematically followed to produce a specific outcome or to solve a problem.

Morpheme

In a language, the smallest unit that carries meaning; may be a word or a part of a word (such as a prefix).

Phoneme

In a language, the smallest distinctive sound unit.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language.