The aggregate demand curve slopes downward indicating that:
A. an increase in the general price level will reduce the aggregate quantity of goods and services demanded.
B. an increase in the general price level will increase the aggregate quantity of goods and services demanded.
C. a change in the interest rate will alter the aggregate quantity of goods and services demanded.
D. consumers substitute between domestic-made and foreign-made goods as their relative prices change.
Answer: A
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Using the notation Pt to designate this period's price level and Pt-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is
A) [(Pt - Pt - 1 ) / Pt] × 100. B) [(Pt -1 - Pt) / Pt - 1] × 100. C) [(Pt - Pt - 1 ) / Pt - 1] × 100. D) [(Pt -1 - Pt) / Pt] × 100.
Mandy purchases 68.2 shares of a mutual fund for $1,500 . Cassie's purchase of these shares contributes $1,500 to which magnitude in the identity Y = C + I + G?
a. C b. I c. G d. None of the above are correct.
The development of the polio vaccine would be considered a(n) _____________________ to society.
Fill in the blank(s) with the appropriate word(s).
The long-run aggregate supply curve, according to the classical model,
A. is vertical at full employment GDP. B. slopes gently upward. C. is horizontal at the equilibrium price level. D. may be downward sloping.