An Increase in Wealth That Doesn't Affect Labor Supply Would

question 47

Multiple Choice

An increase in wealth that doesn't affect labor supply would cause the IS curve to ________ and the FE line to ________.

• A)shift down and to the left; be unchanged
• B)shift down and to the left; shift left
• C)shift up and to the right; be unchanged
• D)shift up and to the right; shift left

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Definitions:

U.S. Automobile Industry

A significant sector of the U.S. economy, involving the design, manufacture, and sale of motor vehicles within the United States.

Oligopoly

represents a market structure with a small number of large firms dominating the industry, leading to potential collaboration and less competitive market conditions.

Total Revenue

The total amount of money received by a company from selling its goods or services before any costs or expenses are deducted.

Upsloping Line

In economics, represents a graph where the value or quantity increases as another variable increases, often seen in supply curves.