What does the aggregate demand curve show? What factors change and what factors remain the same when there is a movement along the aggregate demand curve?
What will be an ideal response?
The aggregate demand curve shows the relationship between the quantity of real GDP demanded and the price level when other influences on expenditure plans remain the same. When there is a movement along the aggregate demand curve, the price level changes and other factors such as expectations, fiscal and monetary policy, and the world economy remain the same.
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Indicate whether the statement is true or false
Describe how the euro was created. What are the benefits of the monetary union? What are the costs?
What will be an ideal response?
Charging drivers with good records lower premiums than drivers with bad records is an example of an attempt by insurance companies to deal with the problem of
A) moral hazard. B) adverse selection. C) drunk driving. D) failure of policyholders to keep paying their premiums.
When a firm is a price maker
A) price is equal to marginal revenue. B) price is greater than marginal revenue. C) price is less than marginal revenue. D) price is equal to marginal cost.