The aggregate demand curve shows that, if other factors are held constant, a
A) higher price level results in a decrease in the quantity of real GDP demanded.
B) higher price level results in an increase in the quantity of real GDP demanded.
C) higher price level results in a lower interest rate.
D) lower price level results in a higher interest rate.
A
You might also like to view...
Why doesn't the Fed have both a money supply target and an interest rate target?
A) The Fed does not control money demand. B) Short-term interest rates do not respond to changes in the money supply, which the Fed can control. C) The Fed cannot offset the impact of changes in cash management by the public or changes in lending policies of commercial banks on the money supply. D) Only the level of interest rates matters when we consider rates of growth in real GDP, employment, and rates of price inflation.
An increase in the time to the promised future payment ________ the present value of the payment
A) decreases B) increases C) has no effect on D) is irrelevant to
On December 17, 2010, President Obama extended income tax cuts initially enacted in 2001 and 2003 for two additional years
According to the permanent-income hypothesis, these tax cuts would represent ________ income and would have ________ on consumption. A) permanent; a significant impact B) permanent; very little impact C) transitory; a significant impact D) transitory; very little impact
The main effect of an increase in capital stock is a(n):
a. rightward shift of the long-run aggregate supply curve. b. rightward shift of the aggregate demand curve c. leftward shift of the long-run aggregate supply curve. d. leftward shift of the aggregate demand curve. e. increase in price and output levels.