The change in the level of planned spending that results from a change in the price level is indicated by the movement of the economy along a given
a. aggregate expenditure curve.
b. aggregate demand curve.
c. aggregate supply curve.
d. both aggregate expenditure curve and aggregate demand curve.
b. aggregate demand curve.
You might also like to view...
Value added taxes _____
a. have the same tax base as a consumption tax b. have the same tax base as an estate tax c. have the same tax base as a retail sales tax d. have the same tax bas as an income tax
The percentage "markdown" due to monopsony power is equal to ________
A) (P - MC)/P B) 1/ED C) (MV - P)/P D) P[1 + (1/ED)]
At a price of $400, consumers demand 1,500 units of a computer. When the price of the computer increases to $440, quantity demanded drops to 1,200 units. The price elasticity of demand for the computer is:
a. 2.6. b. 2.2. c. 2.1. d. 2.3.
The law of supply states that other things being equal
A) supply creates its own demand. B) supply will increase if productivity increases. C) as price increases, quantity supplied increases. D) supply will increase to meet demand if demand increases.