An increase in the price level will
a. decrease the quantity of aggregate demand, shown as a downward movement along the existing aggregate demand curve
b. decrease the quantity of aggregate demand, shown as an upward movement along the existing aggregate demand curve
c. cause a rightward shift in the aggregate demand curve
d. cause a leftward shift in the aggregate demand curve
e. have no effect on the aggregate demand curve
B
You might also like to view...
During the past 70 years, the peak average tariff rate in the United States stemmed from the
A) creation of GATT in the middle of the 1940s. B) Kennedy Administration in the early 1960s. C) Uruguay round of GATT in the 1980s. D) Smoot-Hawley Tariff Act in the early 1930s. E) Clinton-Bush tariff of 2000-2001.
The predictions of marginal utility theory
A) contradict the idea that the demand curve slopes downward. B) support the idea that the demand curve slopes downward. C) support the idea that the supply curve slopes upward. D) contradict the idea that the supply curve slopes upward.
Which of the following is not an argument used in favor of protectionism?
a. To preserve national security. b. To reduce prices paid by domestic consumers. c. To protect against "unfair" competition because of cheap foreign labor. d. To protect an "infant" industry. e. To protect domestic jobs.
A tax increase of $250 will exactly offset a $250 increase in government purchases, leaving aggregate demand unaffected.
Answer the following statement true (T) or false (F)