The aggregate demand curve is downward-sloping because, other things being equal,
A. People buy more goods and services at higher average prices.
B. People buy fewer goods and services at lower average incomes.
C. A higher average price level will induce producers to offer more output than otherwise.
D. People buy more goods and services at lower average prices.
Answer: D
You might also like to view...
The most plausible way to produce a continuous increase in the standard of living within the Solow growth model is to assume
A) continuous technological improvement. B) a positive rate of population growth. C) a zero rate of depreciation. D) continuous increases in the national saving rate. E) continuous growth in the capital stock.
Sally lost her job when her company went out of business because of a recession. This is an example of
Exhibit 9-4 Demand and cost curves for a monopolist
?
As shown in Exhibit 9-4, in order to maximize its profit (or minimize its loss), what price should the monopoly charge for its product?
A. $60 per unit. B. $90 per unit. C. $120 per unit. D. $150 per unit.
The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the
labor force participation rate would change. What will be an ideal response?