The aggregate demand curve ______.
a. slopes upward
b. is perfectly vertical
c. slopes downward
d. is perfectly horizontal
c. slopes downward
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In a market economy, ________ interact in markets to decide the answers to the fundamental economic questions
A) the judicial and legislative branches of the federal government B) large corporations C) households and firms D) state and local governments
The Solow model is distinct from the Romer model in that an increase in population tends to cause ________
A) a permanent decrease in the standard of living in the Romer model B) an increase in spillover effects in the Solow model, but not in the Romer model C) a permanent increase in the standard of living in the Solow model D) a permanent increase in the standard of living in the Romer model
Refer to Figure 9.2. At price 0H and quantity Q1, the deadweight loss is
A) DGC. B) BDC. C) BGC. D) 0FGQ1. E) none of the above
Aggregate demand ________ and shifts the AD curve ________ when ________.
A. increases; leftward; taxes increase B. increases; rightward; foreign incomes increase C. increases; rightward; government expenditure increases D. increases; rightward; taxes increase E. decreases; leftward; the price level rises