The aggregate demand curve is:
A. downward sloping.
B. upward sloping.
C. a vertical line at potential output.
D. a horizontal line at the current price level.
Answer: A
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Using the data in the above table, suppose imports equal $250 billion and investment equals $1,000 billion. Hence government expenditure equals
A) $1,000 billion. B) $750 billion. C) $500 billion. D) $250 billion.
For a given price, a decrease in demand will decrease consumer surplus
Indicate whether the statement is true or false
The long-run equilibrium condition for perfect competition is:
A. P = AVC = MR = MC. B. P = ATC = MR = MC. C. Q = AVC = MR = MC. D. Q = ATC = MR = MC.
The Standard and Poor's 500 index is
A. an index based on the stock prices of 30 actively traded large companies. B. an index of 5,000 companies traded on the national association of securities dealers automatic quotation system. C. an index based on the 500 largest whose market value is close to the market value of all firms in the economy. D. an index of a basket of consumer good purchased by the typical consumer.