The aggregate demand curve identifies the level of aggregate production corresponding to a change in the price level
a. True
b. False
B
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During recessions natural real GDP
A) falls. B) increases. C) remains constant. D) A, B, or C do occur during any given recession.
The aggregate demand and aggregate supply graph has the
a. quantity of output on the horizontal axis. Output is best measured by real GDP. b. quantity of output on the horizontal axis. Output is best measured by nominal GDP. c. quantity of output on the vertical axis. Output is best measured by real GDP. d. quantity of output on the vertical axis. Output is best measured by nominal GDP.
During the worldwide recession of 2007-2009,
A) the Fed and the European Central Bank worked together. B) all countries coordinated macroeconomic policies. C) nations sacrificed some sovereignty. D) the IMF coordinated world economic policies.
A consumer optimum is characterized by
A) the marginal rate of substitution of one good divided by its price equal to the marginal rate of substitution of the other good divided by its price. B) the marginal rate of substitution equal to unity. C) the marginal rate of substitution equal to the ratio of the prices of the two goods. D) the marginal rate of substitution divided by the price ratio of the two goods equal to the income of the consumer.