Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1.
B. P2 and Y1.
C. P2 and Y3.
D. P1 and Y2.
Answer: B
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Any uses of current income for purposes other than purchasing currently produced domestic goods and services are called an injection
Indicate whether the statement is true or false
A higher nominal money supply is equally demanded, given each level of income, at a ________ interest rate, meaning that the LM curve has shifted to the ________
A) higher, left B) higher, right C) lower, left D) lower, right
John Maynard Keynes concluded that investment spending is determined by
a. business confidence. b. economic expectations. c. psychological perceptions about the economy. d. All of the above are correct.
You go to work today, but will get your paycheck at the end of the month. This is an example of money serving as a
A. unit of accounting. B. standard of deferred payment. C. medium of exchange. D. store of value.