Aggregate demand:
A. Refers to the collective behavior of all buyers.
B. Reflects the total quantity of output produced.
C. Increases when the price level increases.
D. Is influenced directly by aggregate supply.
Answer: A. Refers to the collective behavior of all buyers.
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What will be an ideal response?
In the current period a perceived increase in the real wage, will cause households to:
a. work more. b. consume less leisure. c. consume more goods. d. all of the above.
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A) There is a shortage of schools. B) The quality of education rises. C) The cost of providing the education is less than what the student pays. D) The cost of providing the education is more than what the students pays.
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.