Refer to the information provided in Figure 7.10 below to answer the question(s) that follow. 
Figure 7.10Refer to Figure 7.10. At Point C, the slope of q2 = 200 is
A. -2.
B. -1/2.
C. -1.
D. indeterminate from this information.
Answer: B
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What is the aggregate demand multiplier and why does it occur?
What will be an ideal response?
Which of the following is a reason why increases in the price level result in a decline in aggregate expenditure?
A) Price level increases in the United States relative to other countries raise net exports, which lowers aggregate expenditure. B) As the price level rises, government spending falls, which lowers aggregate expenditure. C) Price level increases cause firms and consumers to hold more money, which raises the interest rate. Higher interest rates lower consumption and planned investment expenditures, which lowers aggregate expenditure. D) Price level increases raise real wealth, which causes consumption spending and aggregate expenditure to decline.
The more society consumes today
A) the more it consumes next year. B) the harder it will be to consume less in the future because people will find it hard to adjust to less. C) the less society can consume in the future. D) the easier it will be to consume less in the future.
One undesirable effect of social regulation is that it
A) affects smaller firms disproportionately, creating anticompetitive effects. B) destroys incentives for firms to engage in marginal cost pricing. C) raises prices of goods to consumers, while lowering prices to business and special interest groups. D) reduces the effectiveness of economic regulation.