The net result of deflation is to:
A. reduce the level of aggregate supply in the economy.
B. be neutral and not affect the aggregate demand in the economy.
C. increase the level of aggregate demand in the economy.
D. reduce the level of aggregate demand in the economy.
Answer: D
You might also like to view...
The situation pictured in Figure 6.3
A) is one of increasing marginal returns to labor. B) is one of increasing marginal returns to capital. C) is not consistent with diminishing marginal product of labor or capital. D) shows constant returns to scale. E) shows diminishing marginal products of labor and capital.
Two goods are complementary if:
a. they are part of the basic food group. b. each performs the same basic task. c. the cross elasticity of demand is positive. d. they are used together. e. the income elasticity of demand is negative.
Suppose that some country had an adult population of about 25 million, a labor-force participation rate of 60 percent, and an unemployment rate of 6 percent. How many people were employed?
a. 0.9 million b. 14.1 million c. 15 million d. 23.5 million
An aggregate demand curve shows how
B. the amount of aggregate national production demanded varies with the price level. C. the demand for a particular product, such as bread, varies with the price of bread. D. None of the choices are correct.