The circular flow diagram divides the economy into:
a. Household sector and business sector.
b. Real sector and nominal sector.
c. Domestic sector and foreign sector.
d. Agricultural sector and non-agricultural sector.
e. None of the above is correct.
.A
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Using the Cambridge equation, by how much does the demand for money rise at a constant real GDP of $2,000 billion when the price level rises by 10 percent from 1.00, given k = 0.25?
A) $200 billion B) $20 billion C) $550 billion D) $50 billion
What a buyer pays for a unit of a specific good or service is called:
a. debit. b. MSRP. c. cost. d. price.
The exchange-rate effect is the idea that a higher U.S. price level causes the value of the dollar to increase in foreign exchange markets, and this effect contributes to the downward slope of the aggregate-demand curve
a. True b. False Indicate whether the statement is true or false
The recession of 2008-2009 was associated with a fall in housing prices which shifted aggregate demand to the left
a. True b. False Indicate whether the statement is true or false