A rise in the price level causes
A) a reduction in total planned real expenditures. B) an increase in aggregate demand.
C) an increase in total planned real expenditures. D) a decrease in aggregate demand.
A
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Figure 10-18
Based on , when the aggregate demand curve is in the position AD1, the economy's position of long-run equilibrium corresponds to point
a.
E1.
b.
E2.
c.
E3.
d.
E1 or E2.
A country that is running a budget surplus will not be in debt.
Answer the following statement true (T) or false (F)
The discount window provides:
A. guaranteed emergency funds for banks in trouble at a lower interest rate than others. B. guaranteed emergency funds for banks in trouble at a higher interest rate than federal funds rate. C. loans to banks at low interest rates, only when the economy is doing well. D. loans to banks at low interest rates, so they can lend more money out to the public.
Ahmed has decided not to purchase another can of Stosh because his friends laughed at him the last time he purchased some. Stosh is no longer a popular item. Ahmed's decision is known as
A) price-leadership. B) negative-sum game. C) positive market feedback. D) negative market feedback.