What is TRUE of the aggregate supply curve in the classical model?
A) The aggregate supply curve is downward sloping.
B) The aggregate supply curve is vertical.
C) The aggregate supply curve is horizontal.
D) The aggregate supply curve is not determined by the level of employment.
B
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In the above figure, what could cause the shift of aggregate demand fromAD1 to AD2?
A) depletion of raw materials B) an increase in international trade barriers C) a decrease in consumer confidence D) an increase in input prices
Exports ________ GDP and imports ________ GDP
A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease
The concept of aggregate supply refers to a
A. fixed number of output. B. list of products demanded. C. schedule of output. D. schedule of production costs.
A key tool of countercyclical fiscal policy is
a. the interest rate b. the federal funds rate c. the tax code d. the regulatory code e. Presidential executive orders