If society wants aggregate demand to increase without changes in the price level, then there must be
A. an increase in autonomous spending combined with an increase in the marginal propensity to save.
B. a gap between full employment and the current level of real GDP and an increase in autonomous spending.
C. an increase in autonomous spending and a horizontal short-run aggregate supply curve.
D. an increase in autonomous saving so that autonomous investment spending can increase.
Answer: C
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Which of the following would policy makers monitor to understand personal consumption expenditures (PCEs):
A. S&P 500 Stock Index B. Consumer Price Index (CPI) C. Retail sales D. Real Gross Domestic Product (GDP
Gross Domestic Product is equal to the market value of all the goods and services ____________ in a given period of time.
Fill in the blank(s) with the appropriate word(s).
Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if the price is $4, the market will
A. Experience a surplus of 56 units. B. Experience a shortage of 22 units. C. Experience a surplus of 30 units. D. Be in equilibrium.
The persistence of some "urban legends" and some myths is a reflection of the:
A. Framing effect B. Confirmation bias C. Hindsight bias D. Availability heuristic