In the short run, a decrease in aggregate demand will decrease:
A. the price level and have no effect on real domestic output.
B. both real output and the price level.
C. the price level and increase the real domestic output.
D. the real domestic output and have no effect on the price level.
Answer: B
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A decrease in unplanned inventory investment for the entire economy equals the excess of
A) output over aggregate supply. B) output over aggregate demand. C) aggregate supply over output. D) aggregate demand over output.
An inferior good is one for which
A) demand increases as income increases. B) demand decreases as income increases. C) the demand curve is vertical. D) the demand curve slopes up.
Roughly 144 million people in the United States hold jobs
a. True b. False Indicate whether the statement is true or false
A "decrease in the quantity supplied" suggests a:
a. Movement up along the supply curve b. Movement down along the supply curve c. Leftward shift of the supply curve d. Rightward shift of the supply curve