The aggregate demand curve shows the
A) total amount of nominal goods that the participants in the economy want to purchase.
B) amount of goods producers will produce as production costs fall.
C) total amount of real goods that foreigners want to purchase.
D) total amount of planned expenditures on goods and services at each possible price level.
D
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Villagers in Xiaogang, China, produced more rice than those in surrounding villages because:
a. they had better farmland. b. they were given better seeds. c. they were able to keep the output they produced individually. d. they made each family responsible for a certain, higher quota of rice production. e. they had common ownership over the rice produced.
Distinguish between invention and innovation
Under classical theory, wages and prices are assumed to be relatively flexible both upward and downward. Hence, the short-run aggregate supply curve returns relatively quickly to a position of long-run equilibrium
a. True b. False Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1) Saving is low in many DVCs primarily because income is very equally distributed. 2) The differences in the per capita incomes of the IACs and the DVCs have diminished sharply since the Second World War because of U.S. aid programs. 3) If the real outputs per capita of a rich nation and a poor nation grow at the same percentage rate, the absolute income gap between the two nations will shrink. 4) Capital flight refers to the fact that many DVCs must use their export earnings to pay interest on their outstanding external debts.