Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?
What will be an ideal response?
A downward-sloping aggregate demand curve reflects the inverse relationship between the price level and the level of planned aggregate expenditure, while an upward-sloping aggregate expenditure line reflects the positive relationship between real GDP and aggregate expenditure.
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"Final goods and services" are those that are
A) sold to ultimate or final purchasers. B) produced outside the United States. C) double counted in the calculation of GDP. D) used in the production of other goods and services.
Suppose that the chain-weighted index for GDP in Gambia was 275 in 2015 and 350 in 2016. The inflation rate between those two years was approximately
A) 20.2 percent. B) 27.3 percent. C) 37.5 percent. D) 75 percent.
If a curve falls and then rises, it shows
A) a maximum. B) a minimum. C) a linear relationship D) a constant slope relationship
The Herfindahl-Hirschman (HH) Index is used to
A) measure the degree of nonprice competition. B) measure the degree of market concentration in an industry. C) measure the extent of price leadership. D) None of the above