Because decreases in inflation increase aggregate spending and short-run equilibrium output:
A. the aggregate demand curve is downward sloping.
B. the aggregate demand curve is upward sloping.
C. the aggregate demand curve is horizontal.
D. the short-run aggregate supply line is downward sloping.
Answer: A
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The market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets.
Indicate whether the statement is true or false.
In a monopoly, the Herfindahl Index is
a. 100. b. 10,000. c. 0. d. 10.
The idea of purchasing power parity:
A. always holds. B. rarely holds. C. explains why standards of living have changed over time. D. explains how standards of living is fixed over time.
The typical shape of the long-run average cost curve is like
A. a circle. B. an inverse of the letter "V." C. the letter "C." D. the letter "U."