Which of the following is illustrated by the aggregate demand curve?
A. How real personal income varies with the price level.
B. How real output varies with the inflation rate.
C. How total quantity of output demanded varies with the average price level.
D. How real personal income varies with the inflation rate.
Answer: C
You might also like to view...
Maria Brown is a young tennis player who has shot to fame after defeating Sarah Knowels in three consecutive matches. In the fourth match, Sarah decided to serve left each time. Is this an optimal winning strategy for Sarah?
What will be an ideal response?
Over the past 40 years, the most frequent target for the Fed's monetary policy has been the: a. prime interest rate
b. federal funds rate. c. M1 money supply. d. M2 money supply. e. required reserve ratio.
The absolute income gap between the IACs and the DVCs has:
A. remained constant over time. B. increased over time. C. decreased over time. D. increased in nominal terms but decreased in real terms.
Total revenue decreases if price ________ and demand is ________.
A. rises; inelastic B. falls; unit elastic C. rises; elastic D. falls; elastic