A movement along the AD curve down and to the right is caused by
a. a rightward shift of the money demand curve
b. falling consumer confidence
c. a decreasing price level
d. expansionary open market transactions by the Fed
e. a stable price level and increases in consumption, investment, or government spending
C
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Increases in the price level
A) decrease the opportunity cost of holding money. B) increase the quantity of money needed for buying and selling. C) increase the opportunity cost of holding money. D) decrease the quantity of money needed for buying and selling.
Game theory is important for the understanding of
a. competitive markets. b. monopolies. c. oligopolies. d. all market structures.
Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?
a. If, in a relatively poor country, real income per person had grown by 3.5 percent per year for the last 100 years, it would be a relatively rich country today. b. Rich countries became richer and poor countries became poorer. c. In the United States, real income per person today is about four times as high as it was 120 years ago. d. All of the above are correct.
If aggregate demand increases by the amount of the recessionary GDP gap and aggregate supply is upward-sloping,
A. The economy will move to full employment. B. An AD surplus will occur. C. An inflationary GDP gap will develop. D. A recessionary GDP gap will still exist.