The aggregate demand curve differs from an individual demand curve in that
A) the aggregate demand curve may not slope down while an individual demand curve must always slope down.
B) the aggregate demand curve looks at the entire circular flow of income and product, while an individual demand curve looks at one good, holding everything else constant.
C) prices change along an individual demand curve but prices are held constant along an aggregate demand curve.
D) the aggregate demand curve slopes up while an individual demand curve slopes down.
B
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The ________ plots the relationship between prices and the quantity producers are willing to sell
A) isoquant B) indifference curve C) demand curve D) supply curve
Recall the Application. If the Federal Reserve was making a decision on changing interest rates
A) the Board of Governors would typically make an equally good decision as would the chairman acting on his own. B) the Board of Governors would typically make a better decision than the chairman acting on his own. C) the chairman, acting alone, would typically make a better decision than the Board of Governors. D) neither the Board of Governors nor the chairman, acting alone, would tend to make accurate predictions.
All of the following occur whenever a government taxes a product except
A) the quantity consumed of that product falls. B) the price of that product rises. C) there will be no excess burden if the government's tax revenue is sufficiently large to offset the deadweight loss. D) the marginal benefit of the last unit sold exceeds the marginal cost of producing it.
Paying off the national debt would redistribute income from the
a. debt holders to the taxpayers. b. taxpayers to the major recipients of transfer payments. c. banks to the taxpayers. d. taxpayers to the debt holders.