Consider the three aggregate demand curves shown in the graph. Movement from Point A to Point D represents:
What will be an ideal response?
an increase in spending growth from 4% to 6%
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The total of all planned production for the entire economy is known as
A) aggregate inflation. B) aggregate supply. C) aggregate expenditures. D) aggregate demand.
"Missing markets" result from
a. high transactions costs of such markets. b. strict price controls. c. the inability of producers to gain economies of scale. d. foreign countries dominating a domestic market for a product.
Refer to the information provided in Figure 26.3 below to answer the question(s) that follow.
Figure 26.3Refer to Figure 26.3. Following the recession of 2008-2009, many firms in the United States eventually began investing in new capital. This increase in investment in new capital would cause
A. the short-run aggregate supply curve to shift from AS1 to AS2. B. the economy to move from Point C to Point B along AS1. C. the short-run aggregate supply curve to shift from AS1 to AS0. D. the economy to move from Point B to Point A along AS1.
Positive economics seeks to understand behavior, but not make judgments.
Answer the following statement true (T) or false (F)