A decrease in the general price level is associated with an upward shift in the aggregate expenditures function
a. True
b. False
Indicate whether the statement is true or false
True
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The slope of the AE curve is .80. What is the expenditure multiplier? Everything else the same, by how much does equilibrium aggregate expenditure increase if
a. exports increase from $1.75 trillion to $2.25 trillion? b. government expenditure on goods and services decrease from $2.0 trillion to $1.8 trillion? c. investment increases from $1.2 trillion to $2.3 trillion?
If an economy's actual GDP exceeds its potential GDP, _____
a. wages and prices must fall b. self-correcting forces will shift the SRAS curve to the left c. self-correcting forces will shift the AD curve to the left d. inflation will occur when AD shifts to the left e. unemployment is likely to be unusually high
Assume initially this firm is at point A. The following would be a reason for a movement to point B. 
A. Wages go up and per unit capital costs go up. B. Both wages and per unit capital costs go down. C. Output decreases. D. Wages go down and per unit capital cost go up.
The reason why inflation reduces the value of the multiplier is that part of the change in demand is
A. absorbed by price changes. B. saved rather than spent. C. matched by changes in supply. D. matched by changes in income.