A lower domestic price level tends to:
a. reduce aggregate expenditures and lower the aggregate quantity of goods and services supplied.
b. reduce aggregate expenditures and lower aggregate demand.
c. reduce aggregate expenditures and raise aggregate demand.
d. increase aggregate expenditures and raise the aggregate quantity of goods and services demanded.
e. increase aggregate expenditure on foreign goods and lower net exports.
d
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Which of the following correctly describes the effects of a decrease in net taxes?
a. Disposable income increases, consumption decreases, and saving decreases. b. Disposable income increases, consumption increases, and saving increases. c. Disposable income decreases, consumption increases, and saving increases. d. Disposable income decreases, consumption decreases, and saving decreases. e. There is no effect on either disposable income, consumption, or saving.
The Bureau of Labor Statistics produces data on unemployment and other aspects of the labor market from a regular survey of households called the
a. Census. b. Labor Survey. c. Survey of Economic Indicators. d. Current Population Survey.
Based on the comparative cost ratios implied in Figure 35.2, it is clear that
A. The United States has a comparative advantage in baseballs and Mexico has a comparative advantage in golf shoes. B. The United States should specialize in producing golf shoes, and Mexico should specialize in producing baseballs. C. The United States should import all of its baseballs from Mexico. D. Mexico should import all of its golf shoes from the United States.
Which of the following actions would the Fed take to fight inflation?
(A) Increase the money supply. (B) Reduce the money supply. (C) Increase government spending. (D) Raise taxes.