When the price level falls
a. people want to hold more money.
b. the interest rate rises.
c. investment spending rises.
d. All of the above are correct.
c
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
A decrease in government expenditure shifts the AD curve ________ and a decrease in taxes shifts the AD curve ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
In general, poor countries
A. receive development assistance in order to alleviate poverty. B. have secure property rights, which attract corporations expand their offices in their population centers. C. have slower productivity growth rates than wealthier countries, according to the convergence hypothesis. D. have highly skilled workforces.
A Price Ceiling is the;
(a) Minimum price consumers are willing to pay for a product. (b) Minimum price usually set by government that sellers must charge for a product. (c) Maximum price usually set by government that sellers must charge for a product. (d) None of the above.