Activists-believe that AD is unstable because
A) business and consumer attitudes and expectations shift.
B) monetary policy is variable.
C) fiscal policy effects are unpredictable.
D) Both B and C are correct.
A
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The demand curve for a firm’s product is also the curve showing
A. total revenue. B. marginal revenue. C. average revenue. D. average profits.
When the Fed lowers the interest rate:
A. investment increases, and net exports decreases. B. both investment and net exports increase. C. both investment and net exports decrease. D. investment decreases, and net exports increase.
When the money market is drawn with the value of money on the vertical axis, the value of money decreases if
a. either money demand or money supply shifts right. b. either money demand or money supply shifts left. c. money demand shifts right or money supply shifts left. d. money demand shifts left or money supply shifts right.
Economists equate money with
a. individual wealth. b. income regularly earned. c. assets people use regularly to buy goods and services. d. individual saving.