The horizontal axis for an aggregate demand curve measures
A. real Gross Domestic Product (GDP).
B. disposable personal income.
C. quantity demanded of the representative good.
D. output of all goods and services measured as a quantity index.
Answer: A
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In an open economy, the law of one price implies that
A) the domestic economy may have a comparative advantage in only half the goods it produces. B) perfect competition holds in all domestic markets. C) purchasing power parity should hold. D) the nominal exchange rate should equal one.
Scenic Cinemas surveyed its audience and found that while most movie goers prefer weekends, seniors visit on weekdays. How should the theatre respond?
a. Increase prices for the weekday shows, decrease the prices for the weekend shows b. Decrease both the weekday and weekend ticket prices c. Decrease prices for the weekday shows, increase prices on the weekends d. Increase both the weekday and weekend prices
A reduction in tariffs and quotas on imported goods shifts the
A. AS curve to the right. B. AS curve to the left. C. AD curve to the left. D. None of the choices are correct.
The study of the aggregate economic variables is
A. normative economics. B. microeconomics. C. macroeconomics. D. positive economics.