An aggregate demand curve can be drawn by:
a. shifting the 45-degree line
b. letting changes in autonomous spending shift the aggregate expenditure line.
c. letting changes in the price level shift the aggregate expenditure line.
d. letting changes in the level of income shift the aggregate expenditure line.
e. letting changes in real GDP shift the aggregate expenditure line.
c
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In the case of public goods, the ability to free ride on the efforts of others is an example of
A) low transactions costs. B) insecure property rights. C) government subsidization. D) mutual assurance.
Explain the effects of a tariff on domestic production, the quantity bought, and the price
What will be an ideal response?
Refer to Table 23-3. Given the consumption schedule in the table above, the marginal propensity to save is
A) 0.1. B) 0.4. C) 0.7. D) 0.9.
Given the information in Scenario 4.3, what is the point price elasticity of demand?
A) -1/3 B) -1/6 C) -1/10 D) -1/24 E) -5/24