Which of the following is true of the aggregate demand curve?
a. The aggregate demand curve shows the various levels of expenditures in the economy at alternative price levels.
b. The aggregate demand curve implies a positive relationship between inflation and unemployment.
c. The aggregate demand curve is identical to the income consumption curve.
d. The aggregate demand curve has the same slope as the aggregate supply curve.
e. The aggregate demand curve relates relative prices to the quantity demanded of a particular good.
a
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Reserve requirements on bank deposits are set by
A) the SEC. B) the Federal Reserve board of governors. C) the Federal Reserve district banks. D) Congress.
The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI
a. broader; more b. broader; less c. narrower; more d. narrower; less
The primary way that banks earn money is:
A. through the accumulation of deposits. B. through lending funds and collecting interest on those loans. C. by lending money to the government. D. by the government paying them to regulate the financial system.
Charitable donations to the Red Cross
A) can be explained by the rational ignorance theory. B) can be explained by the rational self-interest theory. C) cannot be explained by the rational self-interest theory. D) prove that there is no scarcity in the United States.