Total market demand can be calculated by
A) horizontally summing individual demand curves at each and every price level.
B) vertically summing individual demand curves at each and every income level.
C) adding up the largest quantity demanded by each individual.
D) looking at the changes in the products' popularity.
Answer: A
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Aggregate expenditures fall as prices rise because higher prices
a. reduce the value of household financial assets and hence reduce planned consumption. b. increase demand for imports and discourage exports. c. cause higher interest rates, which reduce the demand for investment. d. All of these.
In which of the following categories would an agreement to trade currencies in pre-set amounts at a certain date in the future be included?
a. an option b. a futures contract c. a forward contract d. a swap
Without an accepted medium of exchange, people
A. have to specialize in one area of production. B. have to rely on barter in order to exchange goods and services. C. have to use credit to obtain goods and services. D. have to rely on gold or silver in order to exchange goods and services.
The demand for durable goods
A) has decreased over time. B) declines by a greater percentage than does GDP during a recession. C) declines by a smaller percentage than does GDP during a recession. D) rises by a greater percentage than does GDP during a recession.