Which of the following statements is false?
A) Aggregate demand is a specific dollar amount, such as $400 billion.
B) At a given price level, anything that changes total expenditures changes aggregate demand.
C) Total expenditures rises if consumption rises, ceteris paribus.
D) Total expenditures rises if investment spending rises, ceteris paribus.
A
You might also like to view...
Goods and services are scarce because
a. people are greedy b. they are produced using scarce resources c. firms keep production low in order to earn higher profits d. they are produced by firms that seeks profits e. government wants to maintain its power over the economy
If the first four units of a good consumed have marginal utilities of 10, 9, 8, and 7, respectively, this trend is an indication of the:
a. law of diminishing marginal utility b. minimization of utility c. law of consumer equilibrium d. law of diminishing consumer surplus
Refer to Table 8.2. Assume that Sherry's Earrings is producing in a perfectly competitive market and the market price for earrings is $60. To maximize profits Sherry should produce __________ pairs of earrings. A) two B) three C) four D) five
When a shortage of a goods leads to a price increase, its price usually rises because
A) Americans are committed to capitalism. B) most people are better off if it does. C) sellers can benefit by raising their prices. D) higher prices lead to scarce goods being allocated most efficiently.