The aggregate demand curve shows the:
A. inverse relationship between the price level and real GDP purchased.
B. direct relationship between the price level and real GDP produced.
C. direct relationship between real balances and real GDP purchased.
D. inverse relationship between interest rates and real GDP produced.
Answer: A
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Under both the gold standard and the gold exchange standard countries bought and sold U.S. dollars to maintain a fixed exchange rate with the dollar
a. True b. False Indicate whether the statement is true or false
A sub-prime loan is a loan extended to borrowers
a. at a subsidized interest rate below the prime rate normally offered to the most creditworthy borrowers. b. with blemished credit or limited documentation of their income, employment history, and other indicators of credit worthiness. c. seeking a 30-year, fixed rate mortgage. d. who have a FICO score above 660.
Increases in the supply of scientists and engineers can increase the level of
A. investment. B. consumption. C. government spending. D. technology.
Which of the following statements is true?
A. The inclusion of intermediate goods and services into GDP calculations would underestimate our nation's production level. B. The expenditures approach sums the compensation of employees, rents, profits, net interest, and nonincome expenses for depreciation and indirect business taxes. C. Real GDP has been adjusted for changes in the general level of prices due to inflation. D. Real GDP equals nominal GDP multiplied by the GDP deflator.