The aggregate demand curve slopes downward indicating that
a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded.
b. an increase in the general price level will increase the aggregate quantity of goods and services demanded.
c. a change in the interest rate will alter the aggregate quantity of goods and services demanded.
d. consumers substitute between domestic-made and foreign-made goods as their relative prices change.
A
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State mechanic lien laws
(a) required licensing of mechanics. (b) permitted laborers to make claims against the assets of an employer or business if it fell into bankruptcy. (c) assured payment for value added by labor to property of third parties. (d) gave property owners with goods held "in bailkment" a guarantee of competent repair work by mechanics.
In the long run:
A. firms have the ability to enter or exit the industry. B. firms are able to alter some, but not all, of their resources. C. firms are unable to adjust their output choices. D. None of these are correct.
An increase in aggregate demand causes an increase in ________ only in the short run, but causes an increase in ________ in both the short run and the long run
A) the price level; real GDP B) real GDP; real GDP C) the price level; the price level D) real GDP; the price level
The Unique Toy Company rents space by the square foot in a warehouse to store its inventory. The owner of the warehouse just doubled the rent he charges the Unique Toy Company. Everything else equal, the rent increase is likely to ________ Unique's optimal level of inventory.
A. decrease B. increase C. not change D. reduce to zero