The aggregate demand curve sloping downward can be explained in part through:
A. the negative relationship between the price level and government spending.
B. the positive relationship between the price level and net exports.
C. the wealth effect.
D. All of these are true.
Answer: C
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The total production within an economy is measured as
A) Total Domestic Output. B) Total Annual Output. C) Annual Production Value. D) Gross Domestic Product. E) Gross Home Product.
The key objective of purchases by the Federal Reserve of over $1 trillion worth of debt issued by private firms was ________
A) to avoid the bankruptcy of the issuing firms B) to manage expectations C) to prevent such firms from being acquired by foreign companies D) to stimulate spending by firms and households
. If firms perceive that the economy is slowing down or entering a recession, then they will wish to hire a _____ quantity of labor at any given wage, and the labor demand curve will shift to the _____.
a. greater; left b. greater; right c. lower; left d. lower; right
The short run is a time period such that
a. the existing firms in the market do not have sufficient time to change the amounts of any of the inputs that they employ. b. the existing firms in the market do not have sufficient time to either increase or decrease their current rate of output. c. the existing firms in the market do not have sufficient time to increase the size of their existing plant or build a new factory. d. new firms may build plants and enter the industry.