Going from left to right on the aggregate demand curve, real GDP _____.
(A) Falls as price level falls
(B) Rises as price level rises
(C) Rises as price level falls
(D) Falls as price level rises
Ans: (C) Rises as price level falls
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When the flow of money from the foreign countries to the domestic firms equals the flow of money from the home country to the foreign firms, _____
a. a trade surplus exists b. an equal amount of agricultural and manufactured products are exported c. a trade deficit exists d. an equal amount of goods and services are imported e. the value of net exports is zero
As a rule, as a consumer acquires more and more of a good, the marginal utility declines
a. True b. False Indicate whether the statement is true or false
Government spending is an injection in the sense that it
A. increases the amount of total spending. B. increases the size of the federal deficit. C. decreases the amount of household saving. D. decreases the amount of taxes paid.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90