Aggregate demand is
A. the total quantity of all goods sold in an economy in a year.
B. the sum of all planned expenditures for the economy.
C. the horizontal summation of all demand curves for a product.
D. the horizontal summation of all demand curves for state, local, and federal governments and business firms.
Answer: B
You might also like to view...
The 1910–1914 period was chosen as a benchmark period for determining parity prices because that was when
a. there was the greatest number of farms b. corn prices were the highest c. farmers believed that farm and nonfarm prices were such that farms goods tradedequal value for equal value with nonfarm goods d. the exchange standard was most biased in favor of farmers e. farm productivity was the lowest
If the market mechanism is efficient, the marginal cost accurately measures the opportunity cost of a good or service.
Answer the following statement true (T) or false (F)
How does the leftward shift of the supply curve in graph 2 affect the individual firm shown in graph 1?
a. It causes the firm’s quantity of sales to decrease.
b. It causes the firm’s product price to increase.
c. It causes the firm to dip below its average total cost.
d. It causes the demand for the firm’s products to decrease.
Whether exchanges are strictly domestic or across international borders, every party to any transaction
A. must pay the highest retail value. B. expects to gain. C. tries to break even. D. produces the highest rate of output.