Which of the following is a component of aggregate demand?
What will be an ideal response?
purchases by the government
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If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, and they negotiate a price of $2 for a cupcake, the cooperative surplus is
A) $1. B) $2. C) $3. D) $4.
Which of the following statements is false?
A) Richer countries tend to be found in North America, Western Europe, and Japan. B) Countries with large populations tend to be rich. C) Growth of per capita GNP tends to be quite stable about 1.5-3 percent per year in industrialized countries. D) Over the past several decades, growth of per capita GNP tends to be higher on average in industrialized countries than in low or middle-income countries.
A negative demand shock
a. shifts the AD curve to the right b. decreases real GDP and increases the price level in the short run c. is the result of an increase in money demand d. results in a movement down and to the right along the AD curve e. decreases both real GDP and the price level in the short run
The number of firms in a perfectly competitive industry is not fixed in the long run
a. True b. False Indicate whether the statement is true or false