All of the following are reasons for the downward-sloping aggregate demand curve except
A) as the price level decreases, the quantity demanded of real GDP decreases because goods and services are more expensive.
B) as the price level increases, the real value of household wealth declines, reducing consumption.
C) a higher price level increases the demand for money, causing an increase in the interest rate which reduces spending on investment goods and consumer durables.
D) if the price level rises in a country relative to price levels in other countries, net exports will decrease in the original country.
A
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As the price level decreases real GDP demanded increases because
A. consumer wealth increases. B. net exports decrease. C. interest rates decrease and cause lower investment. D. net exports are indeterminant .
The consumer price index is
a. not very useful as a measure of the cost of living. b. a perfect measure of the cost of living. c. a useful measure, but not a perfect measure, of the cost of living. d. not used as a measure of the cost of living.
Refer to the supply and demand graph of Product X below. If there are positive externalities from the consumption of Product X, then the socially optimal demand curve would be:
A. To the left of line D on the graph
B. To the right of line D on the graph
C. At the position of line D on the graph
D. An upward-sloping line
Which of these is an example of how the U.S. Constitution protects the free enterprise system?
A) Congress is given the power to borrow money. B) Congress is given the authority to collect taxes. C) Congress is given the authority to raise and support armies. D) Congress is given the authority to grant patents and copyrights.