When the overall price level decreases, what is the effect on the economy?
a. Purchasers demand a higher quantity of final goods and services.
b. There is a decrease in the quantity of real GDP demanded.
c. Movement occurs along the curve from point A to point B.
d. The aggregate demand curve shifts rightward.
a. Purchasers demand a higher quantity of final goods and services.
You might also like to view...
The money value of all trading activity (Q) at market prices (P) is called Gross Domestic Product for a given year
Indicate whether the statement is true or false
If the economy experiences a recession, the federal government's tax receipts will
A. decrease. B. remain the same. C. fall to zero. D. increase.
Internet auctions
a. allow specialized sellers to reach many customers at low cost b. allow specialized buyers to reach many sellers at low cost c. always take the form of a Dutch auction d. always take the form of an English open outcry auction e. are rapidly being replaced by continuous open outcry auctions
What actions could be taken to stabilize output in response to a large decrease in U.S. net exports?
a. increase taxes or increase the money supply b. increase taxes or decrease the money supply c. decrease taxes or increase the money supply d. decrease taxes or decrease the money supply