The downward slope of the aggregate demand curve shows that
A) a higher price level will cause planned purchase rates for final goods and services to be higher.
B) an increase in aggregate demand reduces the long-run aggregate supply.
C) a lower price level will cause planned purchase rates for final goods and services to be higher.
D) an increase in aggregate demand increases the long-run aggregate supply.
C
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In Macroland autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The vertical intercept of the aggregate expenditures model line is
A. 290. B. 0.25. C. 0.75. D. 320.
Based on the figure above, as a result of international trade, U.S. domestic production ________ million T-shirts per year
A) decreases by 20 B) decreases by 10 C) increases by 40 D) increases by 20 E) increases by 10
An economy growing at a steady rate of 3.1 percent per year doubles in size approximately every __________ years
A) 40 B) 23 C) 32 D) 16
Refer to the above diagram. If aggregate supply shifts from AS1 to AS2, then the price level will:
A. increase and real domestic output will decrease. B. decrease and real domestic output will decrease. C. decrease and real domestic output will increase. D. increase and real domestic output will increase.