What is the total demand for goods and services in an entire economy called?
A. supply and demand
B. aggregate demand
C. consumer demand
D. GDP demand
Answer: B
You might also like to view...
Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labor market?
A) Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences. B) Ultimately, employers who discriminate cannot remain profitable. C) Employers who discriminate pay an economic penalty. D) Employers who discriminate are likely to do so in overt ways such as awarding some workers with benefits-in-kind.
Suppose the exchange rates between the United States and Canada are in long-run equilibrium as defined by the idea of purchasing power parity. If the law of one price holds perfectly, then differences between U.S
and Canadian rates of inflation would A) have no effect on nominal exchange rates. B) be completely offset by changes in the real exchange rate. C) be completely offset by changes in the nominal exchange rate. D) violate the conditions for the law of one price. E) lead to a change in the real purchasing power of each country's currency when it is converted to the other country's currency.
When the quantity effect outweighs the price effect:
A. a price increase will cause an increase in total revenue. B. a price increase will cause a decrease in total revenue. C. a price decrease will cause a decrease in total revenue. D. None of these is true.
Discuss how actions taken by the Federal Reserve during the Great Recession influenced government spending.
What will be an ideal response?