Which of the following is NOT true about the aggregate demand curve?
A. The aggregate demand curve shows total planned real expenditures at different price levels.
B. The aggregate demand curve considers the entire circular flow of income.
C. Changes in the economic conditions in other countries will lead to a shift of the aggregate demand curve.
D. The production possibilities curve determines the slope of the aggregate demand curve.
Answer: D
You might also like to view...
Suppose the economy has a recessionary ga
A) raise real GDP without increasing the price level. B) raise real GDP and the price level. C) raise the price level alone, but cannot increase real GDP. D) raise real GDP and decrease the price level.
In a production possibilities frontier diagram, the attainable production points are shown as
A) the points inside and the points on the production possibilities frontier. B) only the points inside the production possibilities frontier. C) any of the production points. D) only the points beyond the production possibilities frontier. E) only the points on the production possibilities frontier.
If house purchases and renting an apartment are substitutes, then an increase in the price of a new house results in a rise in the rent charged for apartments
Indicate whether the statement is true or false
Toby sells wheat in a perfectly competitive market. The demand curve for Toby's wheat is:
A. horizontal. B. vertical. C. downward sloping. D. U-shaped.