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Unformatted text preview: g news headline: Canadians develop a greater taste for foreign vacations. Assuming that aggregate output is demand-determined, what effect will this have, all other things equal, on the AE function and on equilibrium national income? A) the AE function will shift down parallel to itself and equilibrium national income will fall. B) the AE function will rotate upward (become steeper) and equilibrium national income will rise. C) the AE function will rotate downward (become flatter) and national income will fall. D) the AE function will shift up parallel to itself and equilibrium national income will rise. E) there will be no change in the AE function or in equilibrium national income. 13) All of the following will cause the supply curve to shift EXCEPT: A) a change in factor costs. B) a technological change. C) a change in the price of the good. D) a change in the number of suppliers of the commodity. E) a change in the price of substitute goods. 14) Suppose exports are $200 and imports are given by IM = 0.2Y. At what level of national i...
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This test prep was uploaded on 03/13/2014 for the course ECON 101 taught by Professor Vanderwaal during the Fall '08 term at Waterloo.
- Fall '08