The aggregate demand curve slopes downward because at lower price levels the purchasing power of consumers' assets ________, which ________ real wealth.
A. increases; increases
B. decreases; increases
C. increases; decreases
D. decreases; decreases
Answer: A
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According to the short-run aggregate supply curve, if output minus potential output equals zero, then ________
A) unemployment might be zero B) inflation might be stable C) expected inflation must be stable D) price shocks must be zero E) none of the above
Risk-sharing forms of compensation are beneficial if employee are
A) risk preferring. B) risk neutral. C) risk averse. D) prefer more to less.
The question of how a tax change might impact U.S. economic output is most closely associated with the study of
A) microeconomics. B) managerial economics. C) macroeconomics. D) consumer economics.
According to the accompanying table, Julia has the absolute advantage in making: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. both pies and cakes. B. neither pies nor cakes. C. cakes. D. pies.