The aggregate demand curve shows the ________.
A. inverse relationship between the price level and the quantity of real GDP purchased
B. direct relationship between real-balances and the quantity of real GDP purchased
C. direct relationship between the price level and the quantity of real GDP produced
D. inverse relationship between interest rates and the quantity of real GDP produced
Answer: A
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The natural rate of unemployment equals
A) structural plus frictional plus cyclical unemployment. B) structural plus frictional unemployment. C) the rate of unemployment we observe in any given period of measurement. D) the rate of structural unemployment.
The branch of economics which studies how households and firms interact in markets is called
A) macroeconomics. B) positive economics. C) normative economics. D) microeconomics.
If the Fed wishes to raise the interest rate, it will
a. increase the money supply b. decrease the money supply c. increase money demand d. decrease money demand e. simply set a higher market interest rate
Most innovation comes from universities and governments, which are inherently market driven
a. True b. False Indicate whether the statement is true or false