The aggregate demand curve has
A. a positive relationship between the price level and real GDP.
B. a negative relationship between the price level and real GDP.
C. no relationship between the price level and real GDP.
D. a positive relationship between the price level and nominal GDP.
Answer: B
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What policy approach would an economist propose to internalize the externalities created by resource use? What is the basis for, and objection to, this type of policy?
What will be an ideal response?
What is the difference between positive analysis and normative analysis?
What will be an ideal response?
Assume a closed economy. If consumption spending is $6.2 trillion, investment spending is $2.5 trillion, net taxes are $1.5 trillion and total income is $11 trillion, how much must government purchases be?
a. $2.3 trillion b. $0.8 trillion c. $3.3 trillion d. $7 trillion e. cannot be determined without more information
Professional sports leagues, like the NFL and the NBA, are good examples of monopsony because:
A. They are dominant providers of sports entertainment B. They are the only employers of professional athletes in their respective sports C. They are large corporations owned be small groups D. They operate large facilities and stadiums