Aggregate demand ________ if the expected inflation rate increases because ________
A) increases; people expect to receive cost of living raises as the inflation begins
B) does not change; inflation does not affect the aggregate demand curve
C) increases; people want to make purchases now before the price of goods and services begin to increase
D) decreases; people wait for the exchange rates to change before making purchases
E) decreases; people want to wait for the price of goods and services begin to decrease
C
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A) marginal product. B) average total cost. C) minimum average total cost. D) marginal revenue.
All group decisions are Pareto superior moves
a. True b. False
Which of the following would be included in the calculation of GDP?
(A) Time and effort spent shopping for your household. (B) Paying your nephew to mow the lawn. (C) Purchasing a new vehicle. (D) Selling your car to a friend.
The table gives data for a private closed economy. If gross investment is $12 billion, the equilibrium level of GDP will be
A. $380. B. $370. C. $360. D. $350.