Refer to the graph shown. Given the price increase in the graph, we can infer that the international effect by itself:
A. reduces the quantity of aggregate demand by less than Y0 ? Ye.
B. reduces the quantity of aggregate demand by Y0 ? Ye.
C. raises the quantity of aggregate demand by less than Y0 ? Ye.
D. raises the quantity of aggregate demand by Y0 ? Ye.
Answer: A
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a. Availability of substitute goods b. Excess capacity c. Scale of production d. Inventories e. Cost of production
If a country has a population of 400 million, 160 million people employed and 40 million people looking for work, then its unemployment rate is
A. 10%. B. 20%. C. 25%. D. 40%.
In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer. B) the value of the good to the buyer is greater than its value to the seller. C) the variable cost of producing the good is zero. D) the opportunity cost of consuming the good is zero.
Which of the following is the most unstable category of GDP?
a. consumption b. investment c. government purchases d. net exports