The aggregate demand curve shows
A. an inverse relationship between the price level and real GDP.
B. a direct relationship between changes in the price level and changes in real GDP.
C. real GDP does not change as the price level changes.
D. an inverse relationship between changes in the price level and changes in nominal GDP.
Answer: A
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A rightward shift of long-run aggregate supply without any change in aggregate demand
A) results in a lower price level. B) increases the price level along with an increase in real GDP. C) will leave real GDP unchanged. D) increases the price level without any change in real GDP.
A perfectly competitive firm has
a. A perfectly elastic demand curve b. A perfectly elastic supply curve c. A downward sloping demand curve d. A downward sloping supply curve
As the number of players grows, the costs of game playing fall
Indicate whether the statement is true or false
A market is not a pure monopoly if firms
A. can enter it freely. B. sell unique products. C. can exit the market freely. D. require government permission to sell in the market.