A decrease in the price level will
a. increase the quantity of aggregate demand, shown as a downward movement along the existing aggregate demand curve
b. decrease the quantity of aggregate demand, shown as an upward movement along the existing aggregate demand curve
c. cause a rightward shift in the aggregate demand curve
d. cause a leftward shift in the aggregate demand curve
e. have no effect on the aggregate demand curve
A
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In order to identify differences in preferences among various countries, one would look for evidence that
a. indifference curves from different countries cross.
b. prices for goods differ among countries.
c. different market baskets are chosen among different nationalities.
d. higher income countries choose baskets with more of all goods.
The law of demand concludes that a rise in the price of a golf ball ________ the quantity demanded and ________
A) increases; shifts the demand curve for golf balls rightward B) decreases; shifts the demand curve for golf balls leftward C) decreases; creates a movement up along the demand curve for golf balls D) increases; creates a movement down along the demand curve for golf balls
A decline in the money ________ shifts the LM curve to the ________, causing the interest rate to rise and output to fall, everything else held constant
A) demand; right B) demand; left C) supply; right D) supply; left
A binding price floor:
A. will cause quantity demanded to exceed quantity supplied. B. will cause quantity supplied to exceed quantity demanded. C. will increase total well-being. D. will set a legal maximum price in a market.