Which of the following statements is correct? I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only. II. Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.
A. I only
B. II only
C. Both I and II
D. Neither I or II
Answer: B. II only
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In the 1990s, the rising value of the U.S. dollar made imported goods cheaper and this shifted the
A. aggregate demand curve outward. B. aggregate supply curve inward. C. aggregate supply curve outward. D. total expenditures curve upward.
According to the text, minimum-wage laws cause increases in
A) productivity. B) employment possibilities. C) poverty. D) structural unemployment.
The attempt to force employers to use more labor than they otherwise would, or to force employers to use labor inefficiently, is known as
A) a secondary boycott. B) a sympathy strike. C) a monopsony. D) featherbedding.
Who participates in markets?
A. Consumers and government agencies. B. Business firms. C. Business firms and consumers. D. All of the choices are correct.