Answer the following questions true (T) or false (F)
1. An increase in imports increases aggregate demand.
2. A decrease in disposable income will shift the aggregate demand curve to the left.
3. An increase in the price level shifts the aggregate demand curve to the left.
1. FALSE
2. TRUE
3. FALSE
You might also like to view...
"As the price of gasoline increases, fewer people buy cars that are gas guzzlers." A graph showing this relationship would
A) have a positive relationshi
A business cycle expansion increases income, causing money demand to ________ and interest rates to ________, everything else held constant
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Which of the following helps explain low growth rates of many less developed countries?
a. Good law enforcement b. Political stability c. Low population growth rates d. Excellent legal systems e. Near-subsistence levels of per capita output
One complication in the process of reducing inflation by creating recessions is that the price level
a. adjusts more quickly to recessionary gaps than to inflationary gaps. b. does not apply as it does in inflationary gaps. c. always rises. d. rarely falls.