What is the aggregate demand curve and what does it represent?
What will be an ideal response?
Answer: The aggregate demand curve shows total planned real spending on all goods and services in the economy at various price levels, other things held constant. It represents the components of real Gross Domestic Product (GDP), including consumption spending, investment expenditures, government purchases, and net foreign demand for domestic production.
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All of the following are true regarding managerial diseconomies except which one?
A) They cause an increase in a firm's total profit. B) They can increase as a firm adds more plants. C) They can increase as a firm expands its scope of operations. D) They affect a firm's total profit.
Even though the use of checks lower transaction costs when compared to the use of paper currency, it is unlikely that the use of paper or metallic currency will disappear entirely. Why?
The figure below shows the supply and demand curves for jeans in Smallville.
At the price of $60 per pair, sellers offer ________ pairs of jeans per day, and buyers wish to purchase ________ pairs of jeans a day.
A. 24; 8 B. 8; 24 C. 16; 16 D. 60; 20
The elasticity of demand for apartments is greatest when
A. local politicians are religious. B. there are other price controls in towns besides on rent. C. there are few neighboring towns/suburbs in which to live. D. there are many neighboring towns/suburbs in which to live.