A decrease in the price level will
a. have no effect on aggregate demand
b. decrease aggregate demand
c. decrease aggregate expenditure
d. decrease the equilibrium level of national income
e. increase the equilibrium level of national income
E
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Which of the following was the chief source of federal revenues throughout most of the nineteenth century?
a. Income taxes b. Property taxes c. Tariffs d. Inheritance taxes
Perfect price discrimination:
A. eliminates all consumer surplus. B. maximizes producer surplus. C. creates no deadweight loss. D. All of these statements are true.
If bread costs $1 per pound and meat costs $4 per pound, a consumer whose marginal utility of meat equals 80 utils per pound is maximizing utility only if the marginal utility per pound of bread equals
a. 4 utils b. 5 utils c. 10 utils d. 20 utils e. 80 utils
At the equilibrium point in a perfectly competitive industry, the total surplus (the sum of the consumer surplus and producer surplus) will be at its maximum
a. True b. False Indicate whether the statement is true or false