What are the components of the aggregate demand (AD) curve?
What will be an ideal response?
Consumption, investment, net exports, and government spending
You might also like to view...
Which of the following statements is inconsistent with an elastic demand curve?
A. The relative change in quantity exceeds the relative change in price. B. Total revenues fall when prices rise. C. Buyers are relatively sensitive to price changes. D. The absolute value of the price elasticity of demand is less than 1.
Why do we have to pay a price for most of the goods we consume?
What will be an ideal response?
Which of the following will not cause the demand curve for good X to shift?
A) a change in the price of X B) a change in the price of Y, a complement C) a change in the price of Z, a substitute D) an increase in average disposable real income
Suppose you are the manager of Natural Oils, a firm that specializes in healthy skin oils. To make your oils, you purchase avocado pits from guacamole manufacturers. If the demand for guacamole decreases, this will cause the production of avocado pits to ________ and the price of avocado pits to ________.
A) decrease; fall B) increase; fall C) decrease; rise D) increase; rise