Aggregate demand can be defined as:
a. the total spending by all consumers, business firms, government agencies, and foreigners in the United States.
b. the total amounts that all consumers, business firms, government agencies, and foreigners wish to spend on all final goods and services at various price levels.
c. the total spending by consumers, business firms, and government agencies in one year.
d. the total spending by consumers, business firms, and government agencies on final goods and services.
b. the total amounts that all consumers, business firms, government agencies, and foreigners wish to spend on all final goods and services at various price levels.
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During a period of disinflation the purchasing power of the dollar _____.
Fill in the blank(s) with the appropriate word(s).
________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production
A) Competition B) A centrally planned economy C) Equity D) Voluntary exchange
Financial innovation has caused
A) banks to suffer declines in their cost advantages in acquiring funds, although it has not caused a decline in income advantages. B) banks to suffer a simultaneous decline of cost and income advantages. C) banks to suffer declines in their income advantages in acquiring funds, although it has not caused a decline in cost advantages. D) banks to achieve competitive advantages in both costs and income.
Which of the following is not a determinant of demand?
a. the price of a resource that is used to produce the good b. the price of a complementary good c. the price of the good next month d. the price of a substitute good