A higher price level causes
A. the aggregate demand curve to shift to the left.
B. the C + I + G + X curve to shift down.
C. the aggregate demand curve to shift to the right.
D. the C + I + G + X curve to shift up.
Answer: B
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His analysis started with the recognition that the total quantity demanded of an economy's output was the sum of four types of spending: consumer expenditure, planned investment spending, government spending, and net exports
A) John Maynard Keynes B) Sir John Hicks C) Milton Friedman D) Paul A. Samuelson
The best definition of inflation is a(n):
a. temporary increase in prices. b. increase in the price of one important commodity such as food. c. persistent increase in the general level of prices as measured by a price index. d. increase in the purchasing power of the dollar.
The most common pattern for marginal utility is ______.
A. diminishing marginal utility B. substitute consumption C. a budget constraint model D. a long-term perspective theoretical model
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.