1. When median home prices rise, while holding everything else constant, the value of real wealth __________ and aggregate demand __________.
decreases; decreases
increases; decreases
increases; is unaffected
is unaffected; is unaffected
increases; increases
2. When foreign income rises, U.S. aggregate:
supply will shift to the right.
demand will shift to the right.
demand will shift to the left.
supply will shift to the left.
demand and aggregate supply will be unaffected.