In this graph, how does the expansionary policy influence aggregate demand?
a. It prevents the aggregate demand curve from moving.
b. It shifts the aggregate demand curve to the left.
c. It shifts the aggregate demand curve to the right.
d. It changes the slope of the aggregate demand curve.
c. It shifts the aggregate demand curve to the right.
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The value of consumption at each level of disposable personal income, all other determinants of consumption unchanged, is shown by the:
a. aggregate dissaving curve. b. consumption function. c. investment schedule. d. savings function.
Economists use some familiar terms in specialized ways
a. to make the subject sound more complex than it is. b. because every respectable field of study has its own language. c. to provide a new and useful way of thinking about the world. d. because it was too difficult to come up with new terms.
The quantity theory of money is better able to
A. To explain the inflation rate in the long run B. To explain the full employment in the long run C. To explain the inflation rate in the short run
Which of the following refers to a two-way trade in which a country both exports and imports the same or very similar products?
A. Inter-industry trade B. Intra-industry trade C. Net trade D. Internal trade