The aggregate demand curve
A) is like individual demand curves in that prices of other goods are held constant.
B) is like individual demand curves in that income is constant.
C) differs from individual demand curves in that the aggregate demand curve is not downward sloping.
D) differs from individual demand curves in that the aggregate demand curve looks at the entire circular flow of income and product while the individual demand curve looks at only one good.
D
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Gross national product (GNP) of the United States is the value of all final goods and services
A) produced anywhere in the world by residents of the United States. B) produced in the United States by residents of any nation. C) produced and consumed within the United States. D) produced anywhere in the world, but consumed by residents of the United States.
If consumption = $2,000, investment = $600, government purchases = $500, net exports = ?$40, transfer payments = $340, then _____
a. GDP = $2,720 b. GDP = $3,060 c. GDP = $3,140 d. GDP = $3,400 e. GDP = $3,340
Consider borrowers and lenders who agree to loans with fixed nominal interest rates. If inflation is higher than what the borrowers and lenders expected, then who benefits from lower real interest rates?
A. Only the borrowers benefit. B. Only the lenders benefit. C. Both borrowers and lenders benefit. D. Neither borrowers nor lenders.
The term allocative efficiency refers to a condition in the economy where the resources are being used
A. in the areas that they are most productive or best suited for. B. to produce cake and not bread. C. in various ways and that shifting resources from one area to another is cost free. D. in the most flexible but not most productive ways. E. in the least productive ways.