Other things constant, the economy's aggregate demand curve shows that
A) as the price level falls, real GDP decreases.
B) any change in the price level shifts the aggregate demand curve.
C) the quantity of real GDP demanded decreases when the price level rises.
D) the quantity of real GDP demanded and the price level are not related.
C
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During an inflationary period, a household with savings of $100,000
A) loses because inflation increases the real tax on the interest paid. B) gains because the inflation gives savers more money and so more purchasing power. C) loses because the inflation increases the after-tax real interest rate. D) gains because inflation increases the value of their savings. E) neither gains nor loses because inflation does not affect savers.
If the demand for hamburgers decreases, the equilibrium price
A) rises and the equilibrium quantity increases. B) falls and the equilibrium quantity increases. C) rises and the equilibrium quantity decreases. D) falls and the equilibrium quantity decreases.
Microeconomics is concerned with studying which of the following?
A) the determinants of national unemployment B) the effects of monetary policy C) the study of individual markets D) all of the above
"China is not a typical developing nation." Which of the following economic features is most likely to justify this claim?
A. The government of China spends a significant portion of its revenue on national defense. B. China has a large trade deficit with the United States. C. The Chinese government favors a freely floating exchange-rate policy. D. China has a high national saving rate.