The aggregate demand curve slopes downward in part due to the:

A. negative relationship between the price level and net exports.
B. positive relationship between the price level and exports.
C. negative relationship between the price level and imports.
D. All of these are true.


A. negative relationship between the price level and net exports.

Economics

You might also like to view...

In the country of Konswano there are 4 people. Each person lives for 40 years. In their first 10 years, they earn no income. In the next 20 years, they earn $40,000 per year and in the last 10 years they earn no income

Each year their consumption is $20,000. If everyone in Konswano is 25 years old, then the Lorenz curve for income is ________. A) above the Lorenz curve for wealth B) above the line of equality C) equal to the line of equality D) below the Lorenz curve for wealth

Economics

Consider the following economic agents:

a. the government b. consumers c. producers Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy? A) producers B) consumers and producers C) the government, consumers, and producers D) consumers E) the government

Economics

A corrective tax is intended to: a. cover the costs of negative externalities

b. increase the private benefits of consumption. c. increase the deadweight loss caused by negative externalities. d. increase the deadweight loss caused by positive externalities.

Economics

John is trying to decide whether to expand his business or not. If he continues his business as it is, with no expansion, there is a 50 percent chance he will earn $100,000 and a 50 percent chance he will earn $300,000. If he does expand, there is a 30 percent chance he will earn $100,000, a 30 percent chance he will earn $300,000 and a 40 percent chance he will earn $500,000. It will cost him $150,000 to expand. If John were to expand, which of the following is true?

A. John can expect to earn $120,000 more by expanding, but that is less than the cost of expansion, $150,000. B. John's expected earnings are $50,000 less than if he didn't expand. C. John can expect to earn $120,000 more by expanding and therefore made the most profitable decision. D. All of these statements are true.

Economics