When moving along a market demand curve, the prices of related goods are assumed to be constant. With an aggregate demand curve,
A. the assumption is meaningless because we are using a market basket for all goods and services.
B. the prices of related goods have an inverse relationship.
C. all goods are assumed to have the same price.
D. the same assumption holds true.
Answer: A
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One popular definition of economics is the study of
a. how scarcity increases opportunities to meet ends. b. how markets overcome scarcity. c. one goal and three tasks. d. how to use limited means to meet unlimited wants. e. wants versus needs.
In the equation, Unemployment rate = Natural rate of unemployment - a × (?ctual inflation - Expected inflation), the variable a is a parameter that measures how much
a. actual inflation responds to expected inflation. b. expected inflation responds to actual inflation. c. the natural rate of unemployment responds to unexpected inflation. d. actual unemployment responds to unexpected inflation.
When economists say that health care services are over-consumed, they mean that
The___________is the principle that suppliers will normally offer more for sale at higher prices than lower prices.
a. law of supply b. law of demand c. law of inputs d. law of price