Intended investment, actual investment, and saving are all equal when the economy is in equilibrium
Indicate whether the statement is true or false
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The aggregate demand curve
a. is identical to the AE curve. b. shows the amounts of real output that will be demanded at various price levels. c. shows the amount of real output that will be demanded at various levels of income. d. shows the amount of income that will be earned at various price levels.
The deviation of unemployment from its natural rate is called cyclical unemployment
a. True b. False Indicate whether the statement is true or false
A decrease in consumer confidence will cause a:
A. shift in aggregate demand to the right. B. movement downward along the aggregate demand curve. C. shift in aggregate demand to the left. D. movement upward along the aggregate demand curve.
When Americans decrease their demand for Japanese goods
A) the demand for dollars will rise, and the demand for yen will rise. B) the demand for dollars will fall, and the demand for yen will rise. C) the supply of dollars will rise, and the demand for yen will rise. D) the supply of dollars will fall, and the demand for yen will fall.