We would expect the aggregate demand curve to be
A. Vertical.
B. Horizontal.
C. Upward sloping.
D. Downward sloping.
D. Downward sloping.
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In the circular-flow diagram, one loop represents the flow of goods, services, and factors of production, and the other loop represents the corresponding flow of dollars
a. True b. False Indicate whether the statement is true or false
Which of the following statements is NOT true about money?
A. Money can only be coins and paper. B. Money is a standard of deferred payment. C. Anything that serves as a medium of exchange, as a unit of accounting, as a store of value, and as a standard of deferred payment can be called money. D. Money is any medium that is universally accepted by sellers and creditors.
Which of the following statements about market failure is not true:
A. Market failure causes an inefficient allocation of resources, even in a competitive market B. Market failure can come from causes on the demand-side or the supply-side of a market C. Market failure always results from some government action or policy in a market D. Market failure can result from the number of sellers in a market being too few to ensure competition
Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect:
A. present consumption to rise. B. future consumption to fall. C. a lower rate of growth of real GDP. D. labor productivity to rise.