When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the aggregate demand curve
A) slopes upward.
B) slopes downward.
C) is vertical.
D) is horizontal.
B
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A point inside the production possibilities frontier is ________ while a point outside the frontier is ________.
A. below the maximum possible; the maximum possible B. unattainable; attainable C. attainable; unattainable D. the maximum possible; below the maximum possible
Saving by households
A) decreases when the real interest rate rises. B) increases when the real interest rate rises. C) increases when the real interest rate falls. D) is unaffected by the real interest rate.
What are some of the issues associated with the consumer price index?
What will be an ideal response?
According to the theory of liquidity preference, if the interest rate rises
a. people want to hold more money. This response is shown by moving to the right along the money demand curve. b. people want to hold more money. This response is shown by shifting the money demand curve right. c. people want to hold less money. This response is shown by moving to the left along the money demand curve. d. people want to hold less money. This response is shown by shifting the money demand curve left.