Which of the following statements is correct?I.When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only.II.Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
Answer: B
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Ceteris paribus, in a closed economy, if consumers become more optimistic ________
A) autonomous consumption would decrease B) the equilibrium interest rate should increase C) saving should increase D) all of the above E) none of the above
Price makers do not have market power
Indicate whether the statement is true or false
There are five schools of economic thought that approach the analysis of employment and inflation quite differently. They are
a. classical, Keynesian, neo-Keynesian, rational expectations, and neo-classicists b. classical, Keynesian, neo-Keynesian, rational expectations, and supply-side c. classical, Keynesian, classical-Keynesians, rational expectations, and supply-side d. classical, Keynesian, neo-Keynesian, adaptive expectations, and supply-side e. neo-classical, Keynesian, neo-Keynesian, rational expectations, and supply-side
If T represents the size of the tax on a good and Q represents the quantity of the good that is sold, total tax revenue received by government can be expressed as
a. T/Q. b. T+Q. c. TxQ. d. (TxQ)/Q.