If the price of inputs falls and the level of consumer indebtedness rises:
a. Aggregate demand rises, and aggregate supply falls.
b. Aggregate demand rises, but aggregate supply does not change.
c. Aggregate demand falls, and aggregate supply rises.
d. Aggregate demand and aggregate supply rise.
e. Aggregate demand and aggregate supply fall.
.C
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In the above figure, the minimum efficient scale of output is
A) 5,000 pounds of coffee. B) 10,000 pounds of coffee. C) 13,000 pounds of coffee. D) 15,000 pounds of coffee.
If aggregate demand is $2,000 billion and aggregate supply is $2,300 billion, the price level will rise
a. True b. False Indicate whether the statement is true or false
The acronym HICP stands for:
(a) Harmonised Index of Consumer Prices; (b) Higher Institute for Central Planning; (c) Harmonised Index of Current Production; (d) Hyper-Inflation Control Programme.
Federal Reserve actions that increase nominal interest rates and decrease the money supply:
A. raise the rate of inflation. B. raise bond prices. C. close an expansionary gap. D. close a recessionary gap.