The aggregate demand curve is downward sloping because increases in the price level affect people's real wealth, their lending and borrowing activity, and the nation's trade with other nations in such a way that the quantities demanded for the goods and services produced in the economy decrease
Indicate whether the statement is true or false
T
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When auto workers go on strike at many of the "Big 3" plants around the United States, the supply of American automobiles
A) increases, which is represented by a leftward shift in the supply curve. B) increases, which is represented by a rightward shift in the supply curve. C) decreases, which is represented by a rightward shift in the supply curve. D) decreases, which is represented by a leftward shift in the supply curve. E) remains the same; only quantity supplied changes.
If the ________ curve is relatively more unstable than the ________ curve, a money supply target is preferred
A) IS; IS B) IS; LM C) LM; IS D) LM; LM
The short-run aggregate supply curve shows the _____ relationship between the inflation rate and real growth during the period when prices and wages are _____
Fill in the blank(s) with the appropriate word(s).
What ratio defines the standard of living?
A) (Y/N) B) (Y/K) C) (Y/A) D) (Y/Q)