Which of the following is a component of aggregate demand?
A. Consumption
B. Income
C. Taxes
D. Transfer payments
A. Consumption
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A perfectly competitive firm maximizes its economic profit when it produces the quantity that sets
A) MR = MC. B) TR = TC. C) MC =.AVC. D) MC = ATC.
Some long-run unemployment may be explained by the fact that the number of jobs available in some labor markets may be insufficient to give a job to everyone who wants one
a. True b. False Indicate whether the statement is true or false
Refer to the above figure. The government has just engaged in expansionary fiscal policy shifting the aggregate demand curve from AD 1 to AD 2 . Interest rates have started to rise. Which of the following statements is true in the short run?
A) Real GDP will be $14 trillion since the effect of government spending is not influenced by interest rates. B) Real GDP will fall back to $11 trillion since the effect that increased government spending has on real GDP is short lived. C) Real GDP will go beyond $14 trillion as businesses and consumers react to the increase in interest rates. D) Real GDP will end up somewhere between $11 and $14 trillion as businesses and consumers reduce their spending in response to the increase in interest rates.
Refer to the data. DI is:
Answer the question on the basis of the following data. All figures are in billions of dollars.
A. $284.
B. $329.
C. $274.
D. $402.