The aggregate demand curve illustrates that, as the price level rises
A) the quantity of real GDP demanded increases.
B) the quantity of real GDP demanded decreases.
C) the AD curve shifts rightward.
D) the AD curve shifts leftward.
B
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Suppose the output of a firm hiring workers in a competitive labor market increases by three units when an additional worker is hired. This firm will hire more laborers if the market price of its product is $4 and the wage rate is $9 . [Hint: Marginal revenue product of a resource is equal to the product of marginal product of the resource and the marginal revenue of the firm.]
a. True b. False Indicate whether the statement is true or false
Funds in which deposits of many individual investors are pooled and safely invested in things like short-term government bonds are called money market funds
a. True b. False Indicate whether the statement is true or false
Deflation:
a. under the current trends will cause consumers' purchasing power to shrink. b. has been persistent in the U.S. economy since the Great Depression. c. was prevalent during the oil shocks of the 1970s. d. none of these choices.
Which of the following is true of regulation?
A) Mortgage lending and banking have historically been unregulated and therefore regulation in these sectors is unpopular. B) Regulatory agencies often ignore the secondary effects of their actions and fail to foresee future problems. C) Policy-makers are hesitant to call for new regulations even when it is clear they would help avert future crises. D) Past regulations have been effective at averting crises, but they are unpopular because they reduce the profitability of the regulated industry.