In the income-expenditure model, for each price level there is a different equilibrium output level. These various price level and equilibrium output combinations are used to derive
A) the slope of the planned expenditures line. B) the aggregate supply curve.
C) the aggregate demand curve. D) a point on the aggregate demand curve.
C
You might also like to view...
Refer to Figure 35-1. What is measured along the horizontal axis of the left-hand graph?
A) the wage rate B) the inflation rate C) employment D) output
Loans made to consumers by finance companies are typically
A) only for the purchase of cars or boats. B) at interest rates below those charged by banks for the same type of loan. C) at interest rates above those charged by banks for the same type of loan. D) not made for less than $10,000.
Inflation targeting involves public disclosure of each of the following, except ________
A) policy makers' plans and objectives B) explanation of discrepancies between target inflation and actual inflation C) the federal government debt ceiling D) projections of macroeconomic conditions
Fiona uses all of her income to purchase popcorn and butter. At any two points A and B on Fiona's budget constraint,
a. Fiona is equally happy. b. Fiona is spending more money on popcorn than she is spending on butter. c. Fiona's income is different. d. the price of popcorn relative to the price of butter is the same.