The aggregate expenditure model focuses on the ________ relationship between real spending and ________
A) long-run; real GDP B) short-run; inflation
C) long-run; inflation D) short-run; real GDP
D
You might also like to view...
In the new Keynesian model, if an aggregate demand increase is unanticipated, then ________
A) aggregate demand will not change B) short-run aggregate supply will shift up immediately C) short-run aggregate supply will shift down immediately D) there is no immediate effect on the short-run supply curve
If voters prefer alternatives closer to their most preferred outcome to alternatives farther away from their most preferred outcome, we can say that voters have _____
a. single-peaked preferences b. double-peaked preferences c. rational preferences d. irrational preferences
The firm's demand for labor curve is exactly the same as the:
a. wage rate. b. price of the output. c. MRP curve. d. MP curve. e. labor supply curve.
Other things equal, the higher the price level, the higher is the real wealth of households
a. True b. False Indicate whether the statement is true or false