The AD curve shows the sum of
A) the price level, employment, and real GDP.
B) consumption expenditure, investment, and real GDP.
C) consumption expenditure, investment, government expenditures on goods and services, and net exports.
D) consumption expenditure, investment, the price level, and real GDP.
C
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During the 1990s the household savings rate in the United States as measured by NIPA
A) increased dramatically from two percent to almost six percent. B) fell sharply and was only 0.7% by the year 2004. C) increased only slightly because the federal budget deficit was finally eliminated. D) fell to two percent when a federal budget surplus appeared.
A movement downward and to the right along a demand curve is called a(n)
a. increase in demand. b. decrease in demand. c. decrease in quantity demanded. d. increase in quantity demanded.
If the supply of and demand for loanable funds both shift left, which of the following necessarily happens?
a. the equilibrium interest rate falls b. the equilibrium interest rate rises c. the equilibrium quantity of loanable funds rises d. the equilibrium quantity of loanable funds falls
We say that a good has elastic demand whenever the absolute value of the price elasticity of demand is greater than one. A one percent change in price therefore causes
A. a greater than one percent change in quantity demanded. B. a change of less than one percent in the quantity demanded. C. exactly a one percent change in the quantity demanded. D. a change that cannot be determined based on one percent.