An increase in aggregate demand in the classical range of the aggregate supply curve will
A. increase the price level, but not affect the real domestic output.
B. increase real domestic output, but not affect the price level.
C. decrease both real domestic output and the price level.
D. increase both real domestic output and the price level.
A. increase the price level, but not affect the real domestic output.
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The Robinson-Patman Act of 1936:
A. prohibited selling products at "unreasonably low prices" with the intent of reducing competition. B. made it illegal to monopolize a market. C. repealed the Sherman Act. D. outlawed price discrimination for the purpose of reducing competition.
In the above figure, assume the aggregate demand of the economy is AD2 and the Fed actions move aggregate demand to AD1. In this situation, the Fed has practiced
A) contractionary monetary policy. B) expansionary monetary policy. C) irresponsible fiscal policy. D) Keynesian fiscal policy.
Which of the following is included in the M2 money stock?
a. bonds b. stocks c. gold d. savings-type accounts e. credit card balances
If U.S. consumers become more optimistic about their future income and wealth, the consumption function will shift upward
a. True b. False Indicate whether the statement is true or false