In the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, Box 4 should be filled with 
A. PI for Price Index.
B. AD for Aggregate Demand.
C. RGDP for Real Gross Domestic Product.
D. AS for Aggregate Supply.
Answer: B
You might also like to view...
The money wage rate is constant when moving along
A) only the potential GDP line. B) the aggregate supply curve, the potential GDP line, and the aggregate demand curve. C) only the aggregate supply curve. D) only the aggregate supply curve and the potential GDP line. E) neither the aggregate supply curve nor the potential GDP line.
If the short-run Phillips curve has a very steep slope, the
a. structural deficit will grow during inflation. b. structural deficit will fall during recession. c. inflation costs of reducing unemployment are relatively low. d. inflation costs of reducing unemployment are relatively high.
Suppose that the elasticity of demand for a product is 0.5 and price decreases by 20%. By what percentage will quantity demanded increase?
A. 0.5% B. 5% C. 10% D. 40%
In an effort to clean up the amount of sulfates introduced into the atmosphere the government has ruled that all polluters install smoke stack scrubbers on their smoke stacks and mandated a pollution limit on the amount of sulfates per parts of air
that may be legally emitted into the atmosphere. Suppose some of the polluters have found a more efficient way to eliminate the pollution. How will this discovery change the amount of sulfates emitted into the atmosphere?