The factors that affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the:
A. real-balances, interest-rate, and foreign purchases effects.
B. determinants of aggregate supply.
C. determinants of aggregate demand.
D. sole determinants of the equilibrium price level and the equilibrium real output.
C. determinants of aggregate demand.
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The opportunity cost of the financial resources used to finance the purchase of capital is
A) the price of the capital goods purchased. B) the real interest rate. C) the quantity of investment demanded. D) the supply of investment. E) capital investment.
As a result of moving more decision making from the center toward the periphery of the organization, typically
a. the flow of relevant information to the decision maker should be enhanced b. the flow of relevant information from the decision maker should be enhanced c. the incentives to make good decisions can be weakened d. the reporting of information that is required to make the decision can be relaxed
If the interest rates suddenly increase, it could cause a shift in the economy from the prosperity phase to the downturn phase in
a. the innovation cycle b. the war-induced cycle c. the housing cycle d. the real business cycle e. internal cycles
U.S. government policy to stimulate research and development activities would be most likely to succeed if it involved
a. interest rate policy. b. corporate tax policy. c. personal income tax policy. d. payroll tax policy.