What three effects can alter the aggregate demand curve?
What will be an ideal response?
wealth effect, interest rate effect, international trade effect
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A firm's accounting profit is always equal to or greater than its economic profit
a. True b. False Indicate whether the statement is true or false
If disposable income were to fall from $6,000 to $5,000,
A. induced consumption would fall. B. induced consumption would stay the same. C. induced consumption would rise. D. there is not enough information to determine whether induced consumption would rise, fall or remain the same.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.
A movement upward along a given aggregate demand curve is equivalent to a(n):
A. Increase in aggregate supply B. Increase in aggregate demand C. Upward shift in the aggregate expenditures schedule D. Downward shift in the aggregate expenditures schedule