The aggregate demand curve is a function of ______.
a. real aggregate expenditure and real GDP
b. price level and real aggregate expenditure
c. price level and real GDP
d. real aggregate expenditure and real aggregate demand
c. price level and real GDP
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What is the natural rate hypothesis?
What will be an ideal response?
Suppose when the price of hybrid automobiles rises, consumers buy fewer hybrid automobiles. This implies that
A) there is a direct relationship between hybrid automobile prices and quantities purchased by consumers. B) there is a one-to-one relationship between hybrid automobile prices and quantities purchased by consumers. C) there is a positive relationship between hybrid automobile prices and quantities purchased by consumers. D) there is a negative relationship between hybrid automobile prices and quantities purchased by consumers.
Wendy retails motor homes, which she buys for a sum that does not vary with the number she purchases from the manufacturer. She can sell eleven per week at $40,000 . If she limits sales to ten, she can charge $41,000 each. She will sell eleven per week if the cost of each vehicle is no more than
a. $20,000. b. $30,000. c. $40,000. d. $41,000.
Scarcity
A) does not exist in the United States. B) applies only to developing countries. C) can be eliminated with more efficient production methods. D) is not a shortage.