One reason the aggregate demand curve is downward sloping is because of the
A) interest rate effect. B) tariff effect. C) welfare effect. D) price effect.
A
You might also like to view...
If a firm functions in an oligopoly, it is:
A. one of a large number of firms that produce a good with no close substitute. B. the only firm that produces a good with no close substitutes. C. one of a large number of firms that produce goods that are either close or perfect substitutes. D. one of a small number of firms that produce goods that are either close or perfect substitutes.
The reason people in Professor Rawls' thought experiment would choose an equal distribution of income is that:
A. people are risk-neutral. B. it is the easiest distribution to implement. C. they are concerned about the welfare of others. D. they fear ending up in a disadvantaged position themselves.
The difference between a country's purchases of foreign assets minus foreign purchases of the country's assets during a period of time is
A. net foreign investment. B. net domestic investment. C. net foreign surplus. D. net official reserves.
The aggregate demand-aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation.
a. true b. false