The aggregate demand curve shows a ________ relationship between ________ and aggregate output ________.
A. positive; the interest rate; demanded
B. negative; the price level; demanded
C. positive; the price level; demanded
D. negative; the price level; supplied
Answer: B
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When the price of a good changes, other things constant, what occurs?
A) The supply curve shifts to the right. B) The supply curve shifts to the left. C) The supply curve becomes flatter. D) The supply curve becomes steeper. E) Only quantity supplied changes.
Because the benefits derived from an activity decline as it is expanded, it is generally wise to
a. undertake all actions that generate benefits. b. expend the smallest possible amount of resources on this type of activity. c. avoid any activity with this characteristic. d. stop the activity before perfection is reached..
When a demand curve shifts to the right
A. demand has increased, so supply also shifts to the right, and the equilibrium price increases. B. demand has decreased, so equilibrium price decreases, and equilibrium quantity decreases. C. demand has increased, so equilibrium price increases, and equilibrium quantity increases. D. demand has decreased, so supply also shifts to the right, and the equilibrium price decreases.
A possible reason a nation might impose a protectionist policy such as a tariff is to:
A. increase the level of imports. B. protect an infant industry from foreign competitors. C. encourage specialization in the good in which the nation has a comparative advantage. D. slow domestic production.