In the aggregate demand and supply model, the:
a. vertical axis measures the average price level.
b. horizontal axis measures real GDP.
c. aggregate supply curve is vertical at full-employment real GDP.
d. All of these.
d
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If government expenditure on goods and services increase by $10 billion, then aggregate demand
A) increases by $10 billion. B) increases by $10 billion multiplied by the government expenditure multiplier. C) decreases by $10 billion multiplied by the government expenditure multiplier. D) decreases by $10 billion. E) increases by $10 billion multiplied by the tax multiplier.
There are many excellent substitutes for water in almost all American cities because
A) the demand for water is elastic. B) the demand for water is inelastic. C) the supply of water is limited. D) there are so many alternative drinks readily available in the marketplace. E) water is cheap, and people therefore use it for many different purposes.
When a firm in a competitive market is earning profits, this indicates that the firm is
a. exploiting consumers. b. increasing the value of resources. c. blocking the entry of competing firms. d. reducing overall wealth in the market.
Currency and checkable deposits are
Redeemable for gold and silver from the Federal Reserve System Of intrinsic value which determines the relative worth of money Assets of the Federal Reserve Banks or of financial institutions The major components of money supply M1