The foreign purchases, interest rate, and real-balances effects explain why the:
A. Aggregate demand curve is downward-sloping
B. Aggregate demand curve may shift to the left or right
C. Economy will adjust towards equilibrium
D. Aggregate expenditures schedule may shift up or down
A. Aggregate demand curve is downward-sloping
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An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen b. an increase in insurance premiums c. fewer workers to be employed because their marginal revenue product has decreased d. more workers to be employed because their marginal revenue product has increased e. fewer workers to be employed because their marginal revenue product has increased
Which of the following type of firm is not a price taker in the market in which the firm buys its inputs?
a. Perfect competition. b. Monopsony. c. Oligopoly. d. Monopoly.
Which of the following would shift a firm's short-run cost curves downward?
a. an advance in technology b. an increase in employees' wages c. an increase in the demand for the firm's product d. an increase in excise taxes levied on the firm's product
If nominal wages and salaries are fixed as firms change product prices, the short-run aggregate supply curve (SRAS) is:
a. vertical. b. positively sloped. c. negatively sloped. d. horizontal.