When PAE decreases then the economy will move towards:
A. lower levels of equilibrium GDP.
B. higher levels of equilibrium GDP.
C. constant levels of GDP.
D. higher levels of equilibrium aggregate expenditure.
A. lower levels of equilibrium GDP.
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Most international investment finance today comes from
A) portfolio and foreign direct investment. B) tax collections. C) government financing. D) the sale of antiques.
If the real risk-free interest rate falls, the:
a. Demand curve for real loanable funds rises. b. Demand curve for real loanable funds falls. c. Supply curve of real loanable funds rises. d. None of the above.
Economist John Kenneth Galbraith has argued that most prices in the United States' mixed economy are set by
A. a government planning committee. B. the invisible hand. C. the nation's largest corporations. D. consumers voting with their dollars.
Both monetary policy and fiscal policy were used in response to the recession of 2007–2009.
Answer the following statement true (T) or false (F)