A decrease in interest rates caused by a change in the price level would cause a(n):
A. Decrease (or shift left) in aggregate demand
B. Increase (or shift right) in aggregate demand
C. Decrease in the quantity of real output demanded (or movement up along AD)
D. Increase in the quantity of real output demanded (or movement down along AD)
D. Increase in the quantity of real output demanded (or movement down along AD)
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Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes. The figure above illustrates his production possibilities frontier. What is Gabriel's opportunity cost of growing another ton of potatoes?
A) 0 cows B) 1 ton of potatoes C) 80 cows D) 400 cows E) 100 cows
Job openings are plentiful when the
A) actual real GDP is above the natural real GDP. B) natural real GDP is above the actual real GDP. C) natural real GDP is increasing rapidly. D) None of the above.
Hyperinflation is:
A. an extremely low rate of inflation. B. frequently experienced in the United States. C. an extremely high rate of inflation. D. very erratic inflation.
The labor force is defined as
A. the number of people who are working. B. the number of people over 16 years of age. C. the sum of the employed and the unemployed. D. the number of people in blue-collar jobs.