An increase in investment, combined with an increase in imports, would have what effect on aggregate demand?
a. AD would increase
b. AD would decrease.
c. AD would stay the same.
d. AD could either increase or decrease, depending on which change was of a greater magnitude.
d
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When comparing the annual inflation rate in the United States based on the CPI with the annual inflation rate based on the PCE price index, the data show that the
A) CPI measure tends to exceed the PCE price index measure. B) PCE price index measure tends to exceed the CPI measure. C) CPI measure and the PCE price index measure are equal. D) CPI measure and PCE price index measure move in opposite directions. E) CPI deflator and PCE price index cannot be compared because they measure prices of different baskets of goods and services.
Government printing of money to finance government spending is called
A) irresponsible. B) an open-market purchase. C) sterilization. D) seigniorage.
One of the elements of monopolization is
A) having a superior product or having a superior business acumen.. B) the possession of monopoly power in the relevant market. C) when only one firm exists in an industry. D) having a significant pricing power due to an accident in the relevant market.
At any given price level, equilibrium GDP on the expenditure side occurs when ____
a. Y = C + I + G ? (X ? IM) b. Y = C + I ? G c. Y = C + I + G + (X ? IM) d. Y = C + X + G + (X ? IM)