Deflation will
A) increase aggregate demand.
B) increase the quantity of real GDP demanded.
C) decrease aggregate demand.
D) decrease the quantity of real GDP demanded.
Answer: B
You might also like to view...
Induced expenditures are defined as that part of
A) autonomous expenditure that responds to changes in real GDP. B) real GDP that does not respond to changes in aggregate expenditure. C) aggregate expenditure that responds to changes in real GDP. D) aggregate expenditure that does not respond to changes in real GDP. E) autonomous expenditure that does not respond to changes in real GDP.
Orchards provide services to beekeepers because the bees use the pollen to make honey. This is an example of
A) a positive externality, and too many orchards exist in society. B) a positive externality, and too few orchards exist in society. C) a negative externality, and too many orchards exist in society. D) a negative externality, and too few orchards exist in society.
Which of the following is not a thrift institution?
a. A savings and loan association b. A commercial bank c. A mutual savings bank d. An employee credit union e. A college credit union
In the 1960s and early 1970s, many economists and policy makers thought the Phillips curve was
a. interesting, but had no theory behind it. b. invalid and of no use to policy makers. c. of no interest in making macroeconomic policy. d. a "menu" of possible choices available to policy makers.