Aggregate Demand Questions and Answers
Test your understanding with practice problems and step-by-step solutions. Browse through all study tools.
Which of the following causes a decrease in aggregate demand? A. an increase in the money supply B. a decrease in government spending C. a rise in wages D. an increase in prices
What causes the short-run aggregate supply curve to move to the right?
Fill in the blanks: (Goods and Government) Subsidies are payments from the government to _.
While having a haircut, the hairdresser heard you were studying macroeconomics and said, "The reason the aggregate demand curve slopes downward is that when the price level is higher, people cannot...
Which of the following will not increase aggregate demand? a. Consumers becoming more optimistic about the future. b. An increase in consumer wealth. C. A tax increase by the federal government. d....
Briefly discuss how aggregate demand and aggregate supply may affect your job prospects after you leave college. In other words, do you think the aggregate demand (AD) in near future will increase?
During 2004 to 2006 economic boom, households bought record numbers of automobiles. This increase in household consumption would cause: (a) aggregate supply to increase. (b) aggregate supply to dec...
The aggregate supply curve shows the relationship between: A) the level of inputs and aggregate output. B) the inflation rate and the level of inputs. C) the wage rate and the level of employmen...
What is supply and demand in macro and micro-economics?
What is the demand and supply curve in the economics of a country?
Why are supply and demand considered as factors that make market economies work? Why does supply and demand drive the market economy?
why does the aggregate demand function slope downward?
Why does the AD curve slopes downward? a. per-unit production costs fall as real GDP increases. b. the income and substitution effects are at work. c. changes in the determinants of AD alter the am...
An increase in government spending shifts aggregate demand in what direction?
Using an aggregate supply and aggregate demand diagram, illustrate the following situation: When will expansionary monetary policy mainly increase inflation, but have little effect on output?
Explain how a reduction in each of the following variables affects the aggregate price level (P): (a) the expected price level (b) employment (c) the markup (d) unemployment benefits.
If the dollar appreciates, how will aggregate demand in the United States be affected? A. Aggregate demand will increase as exports increase and imports decrease. b. Aggregate demand will increase...
Explain "Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply." In each case, specify the price-level outcomes.
Fill in the following table as it relates to changes in either AS or AD. |Variable changing|AD or AS shifts?|Which direction is the shift? |The US government increases personal taxes.| |
Fill in the following table as it relates to changes in either AS or AD. |Variable changing|AD or AS shifts?|Which direction is the shift? |Minimum wage for US labor rises.| |
In early 2001, investment spending sharply declined in the United States. In the two months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS anal...
Why is the aggregate demand curve downsloping? Specify how your explanation differs from the explanation for the downsloping demand curve for a single product. What role does the multiplier play in...
A) Provide a brief description of supply and demand. B) How is equilibrium used to determine the market price and quantity?
If consumer 1 has the demand function x_1 = 1,000 - 2p and consumer 2 has the demand function x_2 = 500 - p; then the aggregate demand function for an economy with just these two consumers would be...
Other things equal, describe the effect of the following on aggregate demand or aggregate supply: A reduction in the economy's real interest rate.
Consumption increases. This will cause the aggregate demand curve to _____. A. Increase. B. Decrease. C. Neither.
A personal income tax cut, combined with a reduction in corporate income and excise taxes, would: a. increase consumption, investment, aggregate demand, and aggregate supply. b. reduce productivity...
Suppose that an economy begins in long-run equilibrium before the price level and real GDP both decline simultaneously. If those changes were caused by only one curve shifting, then those changes a...
At all points on the 45-degree line: a. equilibrium GDP is possible. b. aggregate expenditures exceed real GDP. c. consumption exceeds investment. d. aggregate expenditures are less than real GDP.
Which one of the following statements is correct? A. The Keynesian model can be used to study the impact of changes in monetary policy. B. The AD-AS model can be used to study the impact of changes...
Ceteris paribus, a rightward shift of the short-run aggregate supply (SRAS) curve causes: a. an increase in the price level, which in turn causes quantity demanded to fall b. an increase in the pri...
If the propensity to hold money is 6 and the money supply is 12, then the classical aggregate demand curve is A) P = 2Y B) P/Y = 48 C) P = 1/(2Y) D) P = 2/Y
The aggregate demand curve: a. cannot tell us how the total dollar values of spending will ultimately be divided between output and prices. b. tells us what portion of the output is exported. c. te...
A decline in consumer confidence will increase aggregate supply. a. True. b. False.
If the marginal propensity to consume is 0.6, what is the equilibrium income? |a|200 |I|20 |G|100 |NX|0 |T|50
Which of the following will shift the aggregate demand curve to the left? a. The government reduces personal income taxes. b. Interest rates rise. c. The government raises corporate profit taxes...
Explain how an upsloping aggregate supply curve weakens the realized multiplier effect from an initial change in investment spending.
Assuming a long-run aggregate supply curve, an increase in the money supply results in ________ in output and an _______ in the price level.
Illustrate how supply and demand analysis can explain changes in price and output of tea when a substitute good (coffee) is introduced, ceteris paribus.
A decrease in consumption growth will cause aggregate demand to A. first shift outward and then shift inward. B. shift outward. C. remain unchanged. D. shift inward.
In the graph of the AD-AS model, what is measured on the vertical axis? A. The average price level B. The inflation rate C. Real GDP D. Real GDP growth
The AD-AS model is most useful for explaining what causes A. the economy's long-run growth rate. B. inflation. C. stock market fluctuations. D. fluctuations in GDP growth around its trend rate.
What is a reason it might be hard for the Fed to restore aggregate demand in the face of a negative demand shock? A. The Fed must operate in real-time when a lot of the data about the state of the...
Which of the following would likely result in a shift of the aggregate demand curve to the right? a. a tax cut b. a decrease in the quantity of money in circulation c. a rise in the real interest r...
The long-run aggregate supply curve will shift to the left when: A. population decreases B. new sources of oil are discovered C. the price level increases D. technology improves
Changes in short-run aggregate supply can be caused by changes in: A. commodity prices. B. the price level. C. government spending.
We observe an increase in the price level and an increase in real GDP. Which of the following is a possible explanation? A. An increase in factor prices. B. An increase in expected future profits....
Which of the following would cause prices to fall and output to rise in the short run? a. short-run aggregate supply shifts right b. aggregate demand shifts right c. aggregate demand shifts left d....
In the 1990s and the first decade of the 2000s, the war in Iraq reduced that nation's petroleum production and exports to levels that were well below pre-war levels. At the same time, as a result o...
Over the past several years, consumer tastes for tattoos have increased. How has this affected the demand for tattoos?
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fa...
Assume the market for DVD movies is initially at equilibrium. A decrease in the price of streamed movies, a substitute for DVD movies, will ____ the equilibrium price and ____ the equilibrium quant...
What would shift the long-run aggregate supply curve to the right?
True or false? The process through which the price system moves producers and consumers toward the equilibrium point often involves trial and error.
What would happen to the price and quantity sold of Aritzia clothes (a normal good) if consumer incomes increased? a. Equilibrium price will go up and equilibrium quantity will go down. b. Equilibr...
What would happen to the equilibrium price and quantity in the market for ramen noodles if the price of wheat (an input) falls while consumer incomes rise (ramen noodles are an inferior good)?
Tesla Motors makes sports cars that are powered by lithium batteries. Suppose Tesla Motors expects to be able to sell its cars for a higher price next month. Explain the effect that will have on th...
Using the standard 45-degree line diagram, how does an increase in investment spending effect the expenditure schedule? a. It shifts the expenditure schedule downward. b. It shifts the expenditure...
An increase in the price level causes the aggregate supply curve to shift to another supply schedule. True False
Aggregate supply describes a relationship between: a. spending and output. b. spending and income. c. output and prices. d. spending and prices. e. costs and revenue.
Japan experienced deflation in the 1990's. Other things being equal, the expectation of lower prices in the future would most likely cause Japan's AD Curve to: A. shift to the right. B. shift to th...
Other things being equal, as the price level rises exogenously, the aggregate expenditure function shifts ______. a. down and the economy will move upward to the left along the AD curve. b. down a...
Which graph shows an economy with more flexible prices? Explain.
In the long run, what happens to the aggregate price level when the Fed increases the money supply? a. The aggregate price level falls. b. The aggregate price level rises. c. The aggregate price le...
Which of the following factors cannot shift the aggregate demand curve? A) changes in expectations B) changes in wealth C) changes in stock market indices D) changes in the price level
Which of the following adjust to bring aggregate supply and demand into balance? a. the price level and real output b. the real rate of interest and the money supply c. government expenditures and...
Other things the same, an increase in the amount of capital firms wish to purchase would initially shift: a. aggregate demand right b. aggregate demand left c. aggregate supply right d. aggregate s...
True or false? Aggregate demand will shift to the right if government purchases increase.
True or false? Aggregate demand will shift to the right if taxes go up.
Which of the following is not a component of aggregate demand? A. Sales tax receipts B. Government spending C. Investment D. Consumption E. Net exports
Decrease in government spending will ____ the expenditure curve. a. decrease b. increase c. not change d. none of the above
Explain how the following changes in aggregate demand or short-run aggregate supply, other things held unchanged, are likely to affect the level of total output and the price level in the short run...
The aggregate quantity of goods demanded will decrease if: a. real wealth falls. b. the interest rate rises. c. the dollar appreciates. d. All of the above
Which type of externality (pecuniary or real), according to Pigou, leads to a violation of the First Theorem of Welfare Economics? Explain.
True or false? Changes in the price of oil change the economy principally by changing aggregate demand.
All of the following are assumptions made by the dynamic model of aggregate demand and aggregate supply except: a. aggregate demand and potential real GDP decrease continuously. b. the aggregate de...
If investment spending increases and all other levels of spending remain constant, then aggregate: a. supply increases b. supply decreases c. demand increases d. demand decreases
Briefly list and elaborate on the factors that can affect the demand for the following product in the next several years: Airline travel within the Europe.
Discuss the aggregate production function. How does the aggregate production function relate to the labor market end potential GDP?
Which of the following would not cause a shift in the aggregate demand (AD) curve? a. an increase in government spending b. an increase in autonomous consumption c. an increase in net exports d. an...
At a given price level, an increase in expected profits and business confidence will shift the aggregate demand curve: a. rightward. b. leftward. c. both. d. none of the above.
An aggregate demand curve can be drawn by: A. letting changes in the price level shifts the aggregate expenditure line. B. letting changes in the level of income shift the aggregate expenditure l...
When the economy slips into a recession, normally the demand for bonds ________, the supply of bonds ________, and the interest rate ________, everything else held constant. A) increases; increase...
How does aggregate demand shift if you cut taxes?
Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will? a. shift the short-run aggregate supply curve rightward and increase both the price level and real output...
True or false? In a small open economy, when exports exceed imports, domestic output exceeds spending.
In the short run, some input prices are said to be sticky. Sticky prices refers to: a) some firms not being able to change the price that the firms charges. b) some input prices remaining constant...
Suppose Congress authorizes an expansion of the shuttle program. How will this affect aggregate demand, and which determinant of aggregate demand causes the change?
Suppose manufacturers begin building a new plant in Arizona. How will this affect aggregate demand?
When aggregate demand falls below the full-employment level of output, which of the following types of unemployment is most likely to increase? A. Cyclical B. Seasonal C. Frictional D. Structural
U.S aggregate demand can shift due to changes in expectations on the part of: A. U.S consumers, but not foreign consumers. B. U.S businesses, foreign businesses, and U.S consumers. C. Foreign consu...
The four components of aggregate demand are consumption, investment government spending, and net exports. A. True B. False
If foreigners find U.S. goods more desirable and less costly, then: a. there is a movement down the AD curve as the price level decreased. b. AD shifts right and the price level would decrease. c....
If interest rates increase, then: a. there is movement down the AD curve as output decreased. b. AD shifts right and output would decrease. c. AD shifts right and output would increase. d. AD shift...
What happens to the aggregate demand curve when transfer payments are increased by $100 million and the government raises income taxes by $100 million in the same month to pay for the transfer paym...
If prices and wages are inflexible downward, a decrease in aggregate demand will: a. reduce the price level but not real output. b. increase short-run aggregate supply. c. decrease short-run aggreg...
True or false? According to the aggregate expenditures model, at equilibrium GDP, saving is equal to planned investment and there are no unplanned changes in inventory.
Using AD-AS analysis, the decline in consumption and spending would cause?
What is meant by aggregate expenditure? What determines the slope of the aggregate expenditure line?
The level of aggregate supply in the long-run is not affected by: a) changes in technology. b) changes in the capital stock. c) changes in the price level. d) changes in the number of workers.
Which of the following effects best explains the downward slope of the aggregate demand curve? A) a multiplier effect. B) an expectations effect. C) a substitution effect. D) an interest-rate e...
Which of the following help to explain why the aggregate demand curve slopes downward? A) When the domestic price level rises, our goods and services become more expensive to foreigners. B) When...
Aggregate demand (AD) is comprised of expenditure components that include: A) consumption. B) investment. C) government spending. D) net export. E) All of the above.
Aggregate demand curves slope downwards for each of the following reasons except? (i) The substitution effect: As the price level falls, people buy more of the cheaper goods and less of other goods...
According to the dynamic AD-AS model, what is the most common cause of inflation?
What would happen to the aggregate demand curve if the marginal propensity to consume decreased?
Suppose the Australian wine industry is facing competition in overseas markets from low-cost, good-quality wine producers in China and India. Use demand and supply analysis to explain how this woul...
What is the difference between the short run and the long run in macroeconomics? Why is this distinction critical in the analysis of aggregate demand and supply?
How would an increase in world oil prices affect the aggregate demand curve? Would it shift right, shift left, or not be affected? Explain.
How would a short-run decrease in the price level affect the aggregate demand curve? Would it shift right, shift left, or not be affected? Explain.
In the classical theory of economics, what factor determines aggregate demand, which in turn determines the price level?
What component of aggregate demand fluctuates the most?
True or false? When aggregate demand falls below the current output level, an unintended inventory accumulation occurs and the economy is no longer in equilibrium.
Define the unique characteristics of the GDP gap and the aggregate demand shortfall measure.
What effect would an increase in labor productivity as a result of a better-educated population have on aggregate demand or aggregate supply?
If the short-run macroeconomic equilibrium is of the economy's potential output, then there is a(n) and the aggregate price level is expected to. a. to the left; inflationary gap; fall b. to the le...
In the short run (intermediate range) of the aggregate supply curve, higher aggregate demand will increase: A. the price level but reduce real GDP. B. real GDP without raising the price level. C....
True or false? Government spending is the largest component of aggregate demand.
True or false? Aggregate demand is the sum of total output produced by all firms in the United States.
Other things equal, what effect will each of the following have on the equilibrium price level and level of real output? a. An increase in aggregate demand in the steep portion of the aggregate su...
What macroeconomic sector or sectors are impacted by the Interest Rate Effect when deriving the Aggregate Demand curve?
List and explain two factors that will cause aggregate demand to shift to the left.
If the output level is such that the aggregate expenditure line lies below the 45-degree line, which of the following is true? A. Aggregate expenditure is greater than output, so inventories will...
Suppose the price of crude oil drops by more than 50% from August to September. What is the short-run effect of this drop? What would need to happen for the long-run effect to be the same as the sh...
What are the short-run and long-run effects of a sharp increase in the price of copper due to a sudden worldwide shortage?
Did classical or Keynesian economists view the economy as unstable as a result of the instability of aggregate demand? Explain.
Suppose the consumption function is C = $400 billion + 0.8Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier...
True or false? An increase in the price level shifts the aggregate demand curve to the left.
Suppose the average U.S. worker has a large increase in productivity. What impact would this have on aggregate demand, short-run aggregate supply, and real GDP?
Suppose foreign countries purchase an unusually large number of U.S. manufactured passenger and military airplanes. What impact would this have on aggregate demand, short-run aggregate supply, and...
How can the government use government spending or taxes paid by households to decrease aggregate demand?
What is the aggregate demand (AD) curve and what are the components of AD? What factors can shift the AD curve?
Assume now, that A = 115.6 with bar K and bar L unchanged. Find the equilibrium interest rate, national saving, and budget deficit.
Suppose the complete disintegration of OPEC occurs, causing oil prices to fall by one-half. What effect would this have on aggregate demand or aggregate supply? Explain how the equilibrium price le...
Suppose new restrictions slow immigration. How would this cause the aggregate supply curve to shift?
How does a decrease in the price of a non-labor resource (such as oil) affect short-run aggregate supply?
Suppose consumers and executives become more confident in the economic future. How does this affect the aggregate demand curve (shift right or left), and which component of aggregate demand is affe...
Rastell, Inc., a U.S.-based MNC, is considering the acquisition of a Russian target to produce personal computers (PCs) and market them throughout Russia, where demand for PCs has increased substan...
True or false? The aggregate demand curve is the sum of individual demand curves in the economy.
Suppose the U.S. dollar becomes weaker relative to other major currencies. How will this affect the AD curve (shift left, shift right, or no shift), and what specific component of AD is affected?
Suppose European incomes are declining (their economies are in a recession). How will this affect the United States' AD curve (shift left, shift right, or no shift), and what specific component of...
How might a ''perfect'' macro equilibrium be affected by: (a) a stock market crash; (b) the death of a president; (c) a recession in Canada; (d) a spike in oil prices?
An unanticipated change in the growth rate of aggregate demand affects production and employment before they affect prices. Speculate why this occurs.
In the aggregate demand relation, a reduction in the price level causes output to increase because of its effect on? A) firms' markup over labour costs. B) the nominal wage. C) the interest rate....
a. Why does the aggregate demand (AD) curve slope downward? b. What could cause the AD curve to shift to the right? c. What impact would a rightward shift of the AD curve have on the economy?
Increase in demand for ethanol fuel has likewise driven up the demand for corn. As a result, corn prices have risen. The production of beer uses other agricultural crops, such as barley, which can...
Supply and Demand are given by, Supply: P=t/4 q^2 and demand: P=-1/4 q^2+40. How many textbooks are supplied at $20.00?
Supply and Demand are given by, Supply: P=t/4 q^2 and demand: P=-1/4 q^2+40. How many textbooks are in demand at $20.000?
Will the following factors influence aggregate supply and/or aggregate demand? That is, would AS shift, AD shift, both will shift or neither will shift. Indicate whether the shift is an increase or...
What happens to Aggregate Demand if the government decides to print a lot of the country's currency? Why?
What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real o...
Briefly explain how each of the following will affect aggregate demand (i.e. increase/decrease/no effect and the reason why). 1. Interest rate rises. 2. Stock market crashes. 3. Dollar depreciat...
Keynes believed that the combination of unplanned and alternating AD shifts reinforced by multiplier effects causes recurring business cycles. a. True. b. False.
State True or False. In the AS/AD model, as the price level rises, the real value of assets increases, causing consumption to increase. This is one reason why the aggregate demand curve slopes down.
1. Define aggregate demand. 2. Explain any 4 factors that cause a shift in AD.
The consumption function is C = $400 billion + 0.6Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects...
What role does the multiplier play in shifts of the aggregate demand curve?
Through the natural adjustment process; A. Labour market puts pressure on wages, causing the Aggregate Supply curve to shift. B. Labour market puts pressure on wages, causing the Aggregate Demand c...
What does the aggregate demand curve represent?
Determine if the following statements are True or False. 1) The law of demand implies that an increase in the price of good will decrease the demand for that good. 2) The law of supply implies tha...
Explain why the aggregate demand curve slopes down.
Explain the relationship between supply and demand.
A shortage of a good occurs when: a) the quantity supplied equals the quantity demanded. b) the quantity supplied is greater than the quantity demanded. c) the quantity supplied is less than the qu...
How can free-market features be introduced to help alleviate unaffordable rental costs through free market operations of supply and demand?
Explain how uncertainty and incomplete information can affect the Supply and Demand model.
Suppose that a hypothetical economy has the following relationship between its real domestic output and the input quantities necessary for producing that level of output. Input quantity Real domes...
Which two determinants currently have the greatest impact on aggregate demand? Explain your selections.
Give an example of the role of supply and demand in decision-making.
Explain the intuition behind why the aggregate demand curve is downward sloping. Why does an increase in the money supply shift the aggregate demand curve to the right?
Suppose unexpected rapid growth in real income abroad leads to a sharp increase in demand for U.S. exports. What impact will this change have on the price level, output, and employment in the short...
Why does an increase in the price of goods and services trigger a decrease in demand?
Suppose the marginal propensity to consume is 60% and the marginal propensity to save is 40%. Income is $2,000, taxes are $220, and government spending is $300. Find a numerical value for: - Consum...
True or false? A $100 billion increase in government spending and a simultaneous $100 billion increase in tax revenues will have no effect on real GDP.
Explain what AD curve represents and what are five factors that cause the AD curve to shift?
Explain why the following statements are false. a. The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods. b. The long-run aggreg...
Assume firms become very optimistic about future business conditions and invest heavily in new capital equipment. a. Draw an aggregate-demand/aggregate-supply diagram to show the short-run effect...
Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. a. Draw an aggregate demand and aggregate supply diagram to show the short-run eff...
Suppose the economy is in a long-run equilibrium. a. Draw a diagram to illustrate the state of the economy. Be sure to show aggregate demand, short-run aggregate supply, and long-run aggregate sup...
Suppose Intel invents a new and more powerful computer chip. Will this increase, decrease, or have no effect on long-run aggregate supply? Explain.
Suppose that a fall in consumer spending causes a recession. Illustrate the immediate change in the economy using both an aggregate-supply/aggregate-demand diagram and a Phillips-curve diagram. O...
Suppose the book-printing industry is competitive and begins in a long-run equilibrium. a. Draw a diagram showing the average total cost, marginal cost, marginal revenue, and supply curve of the ty...
What factors affect the short-run aggregate supply curve?
Why does the aggregate demand curve slope downward and the short-run aggregate supply curve slope upward?
In many countries around the world, the population is aging and large segments of the population are retiring or close to retirement. What effect would this have on a country's long-run aggregate s...
Identify the effects of equilibrium level of aggregative output and the interest rate.
How does stock market affect aggregate demand?
Explain why an equal dollar increase in both government purchases and net taxes would increase aggregate demand.
You operate a business m which you manufacture furniture. You are able to increase your furniture prices by 5 percent this quarter. You assume that the demand for your furniture has increased and b...
Explain how a recession in Latin America may affect aggregate demand in the U.S. economy.
Describe what the effect on aggregate demand would be, other things being equal, if A) the price level increases. B) the price level decreases.
Describe what the effect on aggregate demand would be, other things being equal, if A) consumption decreases. B) Investment increases. C) investment decreases and government purchases increase.
Describe what the effect on aggregate demand would be, other things being equal, if a. exports increase. b. both imports and exports decrease. c. consumption decreases. d. Investment increases. e....
How do central planners in a recently planned economy estimate demand and supply?
In the Keynesian model, investment, government spending, and net exports are treated as autonomous expenditures, which means they are independent of _____.
Tax cuts will likely affect aggregate demand and aggregate supply. Does it matter which is affected more? Use the AD-AS framework to explain.
Will a direct increase in the price of U.S. goods relative to foreign goods lead to a change in the quantity demanded of real GDP or to a change in aggregate demand? Explain.
Predict what will happen to the AD curve as a result of the money supply rising.
Suppose the economy is self-regulating and the price level is 110. The quantity demanded of real GDP is $4 trillion, the quantity supplied of real GDP in the short run is $4.9 trillion, and the qua...
Give an explanation for the negative slope of the simple demand and aggregate demand curves.
Suppose the government spends $3 billion to buy police cars. Explain why aggregate demand might increase by more or less than $3 billion.
What might shift the aggregate-demand curve to the left? Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the...
Suppose the United States increases exports of wheat and other crops to Russia, Ukraine, and other former Soviet republics. In which direction would this cause the aggregate demand curve to shift?...
Suppose the federal government increases spending for highways, bridges, and other infrastructure. In which direction would this cause the aggregate demand curve to shift? Explain.
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction? What...
Explain the estimation of demand and supply by the central planners in a recently planned economy.
A rise in aggregate demand raises real GDP and the price level. Draw the aggregate supply curve that is consistent with this statement.
In the simple Keynesian model, increases in AD that occur below Real GDP will have no effect on the price level. Do you agree or disagree with this statement? Explain.
Beginning with long-run equilibrium, explain what happens to the price level and real GDP in the short run and in the long run as a result of a decline in AD.
A change in the price level affects which of the following?
Diagrammatically represent the short-run effect of an increase in wage rates on the price level and on Real GDP.
What is the effect on the U.S. price level of Japan's having lower real interest rates than the United States has? Explain your answerer
Explain the link between the Mexican demand for U.S. goods and the supply of pesos. Next, explain the link between the U.S. demand for Mexican goods and the supply of dollars.
Why is the shape of the aggregate supply curve important to the Keynesian-monetarist controversy? (Hint: Review Exhibit 6 in the chapter on aggregate demand and supply.)
In the short run, an increase in the price level causes which of the following a. A rightward shift in the aggregate demand curve. b. A leftward shift in the short-run aggregate supply curve. c. A...
What would shift the aggregate demand curve to the left? a. an increase in exports b. an increase in investment c. an increase in government spending d. a decrease in government spending
Explain the way a strong economic growth in China affects the aggregate demand in the United States.
Explain the factors that cause shift in the long-term aggregate demand curve and the factors that change during Great Depression.
The shape of the aggregate supply curve matters to one s view of the ability of government to change Real GDP by way of demand-side fiscal policy and monetary policy. Do you agree or disagree? Expl...
A rise in physical capital can raise real GDP and lead to a rightward shift in the LRAS curve. Show this relationship diagrammatically.
What happens in the financial sector can affect the real sector, and what happens in the real sector can affect the financial sector. Do you agree or disagree with this statement? Explain your answ...
According to Keynes, can an increase in saving shift the AD curve to the left? Explain your answer.
Suppose that, at a price index of 154, the quantity demanded of U.S. Real GDP is $10.0 trillion worth of goods. Do these data represent aggregate demand or a point on an aggregate demand curve? Exp...
Graphically portray (a) a change in the quantity demanded of Real GDP and (b) a change in aggregate demand.
If the economy is self-regulating, how do changes in aggregate demand affect the economy in the long run?
Suppose aggregate demand increases, causing an increase in the price level but no change in real GDP. Using an aggregate demand and aggregate supply diagram, illustrate and explain how this could o...
Why does the aggregate demand curve slope downward? Give real-world examples of the three effects that explain the slope of the curve.
Suppose aggregate demand increases, causing an increase in real GDP but no change in the price level. Using an aggregate demand and aggregate supply diagram, illustrate and explain how this could o...
According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then a. the economy would remain in this condition indefinitely. b. the government...
Key Concept: Aggregate supply curve If a new method for obtaining oil from dry oil fields is found, then we will see a. The AS curve shifting to the left. b. A movement to the left along the AD c...
Which of the following reasons helps explain why the aggregate demand curve is downward sloping? a. The real balances effect: Consumers spend more on goods and services when the price level falls...
The aggregate demand curve is defined as a. the net national product. b. the sum of wages, rent, interest, and profits. c. the real GDP purchased at different possible price levels. d. the total...
Which of the following is not a range on the eclectic or general view of the aggregate supply curve? a. Classical range. b. Keynesian range. c. Intermediate range. d. Monetary range.
Other factors held constant, a decrease in resource prices will shift the aggregate: a. demand curve leftward. b. demand curve rightward. c. supply curve leftward. d. supply curve rightward.
In the short run for the self-correcting aggregate demand and supply model, nominal wages and salaries are assumed to be a. constant. b. sticky. c. inflexible. d. All of the answers above are corre...
In the short run, an increase in the price level causes which of the following? a. A rightward shift in the aggregate demand curve. b. A leftward shift in the short-run aggregate supply curve. c. A...
Is expansionary fiscal policy more attractive to politicians who believe in larger government or to politicians who believe in smaller government? Explain your answer.
Explain how to use quantitative easing to stimulate aggregate demand.
Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP, unemployment, and inflation?
Describe the mechanism by which demand creates its own supply.
For a high-income economy like the United States, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middle-income country such...
Predict how the following event will raise or lower the equilibrium wage and quantity of oil workers in Texas. Sketch a demand and supply diagram to illustrate your answer. Several major companies...
What of the following is not one of the four components that comprise AD? A) Net Exports B) Investment C) Government regulations D) Consumption
As price level decreases, aggregate demand will A) Increase B) Stay the same C) Decrease D) Not enough information
Imagine that there is an increase in the cost of steel, which is used in the production of automobiles. What happens to the supply of automobiles? What happens to the demand for automobiles?
The aggregate demand curve A. is negatively sloped. B. demonstrate an inverse relationship between the price level and real gross domestic product demanded. C. shows how real gross domestic product...
In the Keynesian cross, assume that the consumption function is given by C = 200 + 0.75(Y - T). Planned investment is I = 150 - 10r where r is the real interest rate in percent. Government purchas...
Give a useful definition of price gouging. When is a demand induced price increase considered price gouging, and when is it not? Does the answer depend on the speed or level of the price increase?...
An increase in taxes combined with a decrease in government purchases would: (a) increase AD (b) decrease AD (c) leave AD unchanged (d) have an indeterminate effect on AD
In order to decrease aggregate demand, does the value of the domestic currency relative to the foreign currency need to appreciate or depreciate? Explain.
In order to decrease aggregate demand, do interest rates need to increase or decrease? Explain.
In order to decrease aggregate demand, do consumer expectations about future profitability need to improve or worsen? Explain.
Is the AD curve always downward sloping? Discuss and use graphs where necessary to explain.
In the Aggregate Supply/Demand model, an increase in the P variable means: A. the price of a particular good has gone up B. average price levels have gone up C. the economy is in an expansion D. th...
Give an example of a real-world scenario that would help explain both short-run aggregate supply and long-run supply curves.
In the AS-AD model, show graphically what would happen to the US economy in the short-run and in the long-run if income tax rates increase. Label the initial long-run equilibrium with A, the short-...
Explain Aggregate Demand/ Aggregate Supply and Aggregate Expenditure Model. which model, the AD/AS or the AE model better explains the relationship between rising price levels and GDP? Why?
In the output market in the short run, any rise in the real exchange rate EP*/P, will cause A) an upward shift in the aggregate demand function and a reduction in output. B) an upward shift in the...
Consider a closed economy with the following consumption function: C = 250 + 0.8(Y - T) Assuming that investment (I) and government purchases (G) are unaffected by the change, how would autonomou...
What is the difference between demand-side policies and supply-side policies? Provide examples of each type. Using separate AD/AS diagrams, show how these policies differ in terms of their effect o...
Which one of these will not occur if the aggregate price level falls? a. Interest rates will fall. b. Exports will rise. c. The value of bonds will fall. d. Household purchasing power will rise.
How will the AD curve be affected if, all other things remaining equal, the interest responsiveness of the demand for money becomes larger?
Explain aggregate demand and aggregate supply in layman's terms.
According to the aggregate demand and aggregate supply model, in the long run what is the impact of an increase in the money supply? a. Both the price level and real GDP are unchanged. b. It increa...
The inverse demand function for water w among urban users is given by Du(w) = 10 - 2(w), and the inverse demand function for water among rural users is given by Dr(w) = 6 - w. The total amount of w...
True or false? If the AD curve is relatively flat, the Fed is willing to accept large changes in output to keep the price level stable.
Suppose the economy is producing at the natural rate of output. An open market sale of bonds by the Fed will, in the short run, cause [{Blank}] in real GDP and [{Blank}] in the aggregate price leve...
What would be the effect on the aggregate demand curve of an increase in U.S. net exports?
Assume the following: C = $200 + .75DI I = $100 G = 300 Xn = $50 Calculate the equilibrium level of output. What is the multiplier? Show the equilibrium level of output graphically. (Assume the...
When the demand for exports of a country declines exogenously, then: a. IS will shift to the right. b. IS will shift to the left. c. LM will shift to the right. d. LM will shift to the left.
Which would be considered to be one of the factors that shift the aggregate supply curve in the short run? A change in: a. consumer spending b. government regulation c. net exports d. personal inco...
Utilizing the Aggregate Demand (AD) and Aggregate Supply (AS) model, what information do we learn that helps better understand the economy?
Explain supply and demand and their interaction. Give some examples that demonstrate the relationship between supply and demand.
Describe the various components of aggregate demand and the importance of each. How do changes in these components affect the economic outlook for the economy?
What is the relationship between aggregate demand and consumption?
Graphically show and link the long-run equilibrium in the goods market and money market, using MD-MS diagram, Investment Expenditure diagram, AE-Y diagram, and AD-AS diagram. Clearly describe based...
Consider a typical aggregate demand and supply curve of an economy operating at its long-run equilibrium. Explain the whole process of transition to a new long-run equilibrium after the same positi...
Consider three economies, A, B, and C. Aggregate desired expenditure (AE) in economy A is composed of only consumption expenditures and Investment, in economy B is composed of consumption expenditu...
Define aggregate demand shock. Use a maximum of two sentences for your answer.
Define aggregate supply shock. Use a maximum of two sentences for your answer.
The level of aggregate expenditures in a closed economy is determined by the: a. expenditures of consumers and businesses. b. intersection of the saving schedule and the 45-degree line. c. equality...
On the 45-degree line diagram, for points that lie below the 45-degree line: a. planned aggregate expenditure is less than GDP. b. planned aggregate expenditure is equal to GDP. c. planned aggregat...
Use demand and supply analysis to show how the equilibrium price and interest rate in the bonds market change if the economy goes into recession.
If aggregate demand increases, how is inflation a possible outcome of this policy?
In a small open economy with perfect capital mobility, if the Bank of Canada chooses to fix the value of the Canadian dollar, aggregate demand could be increased by A. increasing government expend...
An increase in aggregate demand will have what effect on the price level and real GDP in the short run?
What effect does a reduction in taxes have on the AS curve?
In the economy of a city called "Heaven" the aggregate demand is illustrated with the AD0 curve. Suppose that after a relative directive comes directly by the Fed, the Board of Directors has taken...
Refer to the table below : i. Using the information provided in the table above, plot the Aggregate Demand & Aggregate Supply curves by hand. Insert your drawing below. ii. Identify the macroeco...
State whether true or false. A decrease in W will cause the aggregate supply curve to shift to the left.
The level of aggregate supply in the long-run is not affected by: A) changes in the number of workers. B) changes in the price level. C) changes in the capital stock. D) changes in technology.
A. Using an AS/AD model, illustrate how the following affects the economy in the short run (SRAS is horizontal). i. The government increases spending. ii. Wages decrease significantly as a result o...
Under which conditions will changes in imports reduce aggregate demand?
Under which conditions will changes in imports expand aggregate demand?
Explain the role that the imports play in aggregate demand.
The Australian government has proposed a stimulus policy for the Australian economy that includes subsidy payments to households to refit Australian homes with insulation in order to both stimulate...
Determine whether an increase in net taxes, other factors held constant, would, in the short run, lead to an increase, a decrease, or no change in the level of real GDP demanded.
Whenever AD or AS shifts, putting an economy out of long-run equilibrium, AS has a natural tendency to shift in such a way so as to bring the economy back into long-run equilibrium. If the economy...
For the aggregate demand, income and the price level are: a) both falling b) inversely related c) directly related d) both rising 2.
_________ increases the quantity of real GDP supplied and is shown as a movement along the AS curve. a) a fall in the expected rate of profit b) a rise in the price level c) an increase in potentia...
If a friend asks you why the price of bananas is higher during certain times of the year, use the laws of supply and demand to explain how the market affects the price.
Suppose Q_S = 18P - 7W - 10, Q_D = 120 - 2P + .05M, where W is the wage level in the foreign country in which the good is manufactured, and M is the income level (in thousands) in the United States...
When investment spending increases in the vertical range of SRAS, then the price level will A. increase and output will decrease. B. decrease and output will increase. C. increase and output will i...
State true or false and justify your answer: If the MPC in the economy is 0.75, the government could shift the aggregate demand curve rightward by $30 billion by cutting taxes by $10 billion.
In 2014, China decided to cut back on its economic growth in order to prevent imbalances from occurring in their economy. How did China's actions affect aggregate demand in the rest of the world?
Suppose an economy is initially in long-run equilibrium. Then the economy's population is growing faster than the economy's ability to increase production. What will happen to AD, SRAS, LRAS in AD-...
Complete the sentence by choosing the correct word. The
Which factors when decreased, will result in shifting the aggregate demand (AD) curve to the left?
The relationship between the level of prices and the total demand for all goods and services is known as: a) aggregate demand, b) market demand, c) market supply, d) aggregate supply.
The real balance effect results in: a. An upward slope of the aggregate demand schedule, b. A downward slope of the aggregate demand schedule, c. An upward slope of aggregate supply schedule, d. A...
According to the Keynesian model of macroeconomic equilibrium, a decrease in aggregate demand a. will not cause nominal wages to decline sufficiently to restore full employment. b. will cause an in...
Other things being equal, an increase in input prices will a. shift the aggregate supply curve inward and reduce potential real GDP. b. shift the aggregate supply curve inward without reducing pote...
When the price level falls a. aggregate demand shifts to the left. b. all prices of individual goods and services decrease. c. aggregate demand shifts to the right. d. aggregate quantity demanded i...
A. Using the AD-AS framework, graphically illustrate and explain what happens to the equilibrium price level and the equilibrium level of real GDP in response to an increase in consumer expectation...
Use the aggregate expenditure (AE) model to describe the impact of the following on equilibrium output: "the economy is on an improving pathway boosted by rising business investment and strong expo...
Which of the following can be shown on the AS/AD model? a. Inflation and growth, b. Deflation and growth, c. Inflation and depression, d. Deflation and depression, e. All of the above.
The aggregate demand schedule represents the relationship between the quantity of goods and services demanded and: a. the overall price level, b. the market interest rate, c. the quantity of mon...
In a Fixed Price Model, an increase in taxes will PAE, output, nominal interest rate. A. increase; increase; increase B. increase; increase; decrease C. decrease; decrease; decrease D. decrease; de...
The price level falls in the United States. Ceteris paribus (all other things equal), which of the following occurs? a. Quantity of aggregate demand decreases b. Aggregate demand increases c. Impor...
An increase in the wealth level in China will a. increase aggregate demand in China. b. increase aggregate demand in the U.S. c. decrease U.S. aggregate demand. d. increase aggregate demand in Chin...
The price level falls in the United States. Ceteris paribus, which of the following occurs? a. Quantity of aggregate demand decreases b. Aggregate demand increases c. Import purchases increase d. I...
Refer to the graph below. The economy is in long-run equilibrium at what point?
Which of the following would cause the aggregate demand curve to shift to the right? a. An increase in the price level b. A decrease in the price level c. An increase in government purchases d. An...
What might shift the aggregate supply curve to the left?
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts and in which direction? What h...
Assume that there are three types of teams in Major League Baseball: large market, medium market
Do all government purchases have the same effect on aggregate demand? Explain.
Use the Keynesian cross diagram to analyze the effects of the following on real output. A. decrease in government purchases B. increase in autonomous consumption C. increase in taxes
The 45 degree line drawn to find the demand-side equilibrium: a) Shows all points at which the aggregate demand is equal to aggregate supply, b) Shows all points at which the general price level is...
A change in the expected price level shifts A. the aggregate demand curve. B. the short-run aggregate supply curve, but not the long-run aggregate supply curve. C. the long-run aggregate supply cur...
In an economy with a vertical aggregate supply curve, a decrease in taxes will affect price level and employment in which of the following ways? (Price level/Output) A. Decrease/Increase B. Increas...
Suppose that oil prices increase sharply while the rate of growth in labor productivity declines, The combination of these two factors should ____ a. shift the aggregate demand curve to the left. b...
How would the aggregate demand curve be affected if the import prices increase?
U.S. was at macro equilibrium and full-employment Qf and P1. The U.S. stock market crashes.
What is the relationship between aggregate demand and price level?
Which of the following provides a correct definition of aggregate demand? a) Aggregate demand is the quantity of domestic product that is demanded at each possible income level, ceteris paribus, b)...
In the short-run, an decrease in SRAS would result in: a. a lower rate of inflation and a higher rate of unemployment. b. a higher rate of inflation and a lower rate of unemployment. c. a lower...
How do aggregate demand and aggregate supply curves differ from market curves?
Which of the following statements is true? A. Required reserve ratio is a tool used by government to control the demand for money. B. The four components of aggregate supply are the same as aggrega...
Which of the following would cause an upward movement along the aggregate demand curve?
An increase in the aggregate demand for goods and services has a larger impact on output (blank) and a larger impact on the price level (blank).
An increase in production costs will shift the: A. short minus run aggregate supply curve. B. long minus run aggregate supply curve. C. aggregate demand curve. D. none of the above.
Explain carefully why an initial change in aggregate demand will shift the aggregate demand function by a multiple of the initial change in output.
Refer to the Figure below. A lower cost of imported raw materials used in production will cause a(n) [{Blank}] domestic production and, in turn, will cause a [{Blank}] investment spending on machin...
A country in South America is experiencing high inflation, around 15% annually, and high unemployment, around 25%. According to the AD/AS model, which of the following is most likely to explain thi...
Using an AD/AS, explain how an increase in domestic wages might affect the output of the Chinese economy.
Which of the following affects aggregate demand? (Pick all that apply) a. Federal government spending. b. Tax rates on consumption. c. Tax rates on corporate investment. d. Crop failures due to wea...
What is aggregate demand? How does aggregate demand affect the macroeconomy?
In a model with no government or foreign sector, if autonomous consumption is Co = 80, investment is Io = 70, and the marginal propensity to consume is c = 0.75, equilibrium income is: a. 150 b....
In a model with no government or foreign sector, if autonomous consumption is C_0 = 80, investment is I_0 = 70, and the marginal propensity to consume is c = 0.75, equilibrium income is A. 150 B. 2...
Summarize Friedman's critique of managing aggregate demand to maintain full employment.
Which of the following events would cause the aggregate demand curve to shift out? a) A recession overseas causes foreigners to buy fewer U.S. goods. b) Households decide to save a larger share o...
1. In aggregate demand what causes the lags in the effect of monetary and fiscal policy? 2. What are the implications of these lags for the debate over active versus passive policy?
The drop in housing prices set off a chain reaction of events that led to the collapse of a number of large financial institutions. With the financial sector incapacitated with fear and mistrust, i...
Explain how to graph the change in the rate of consumer spending when there is an increase in interest rate?
Which curve (AD or SRAS) will be affected and which direction (leftward or rightward) will it shift when Congress goes to war against Canada?
Which curve (AD or SRAS) will be affected and which direction (leftward or rightward) will it shift when Congress increases the income tax?
Discuss three ranges of the aggregate supply curve. Explain changes in the AD-AS macroeconomic equilibrium due to the aggregate demand shifts and due to aggregate supply shifts. Apply the AD-AS mod...
Increased consumer confidence will shift the aggregate demand curve to the [{Blank}] and [{Blank}] output demanded. a. right; increase, b. left; decrease, c. left; increase, d. right; decrease.
True or false? One reason the aggregate demand curve slopes downward is the real wealth effect: a decrease in the price level increases the value of money holdings and consumer spending rises.
Which of the following government policies would increase aggregate demand? a. A stimulation of consumption through an increase in taxes b. A surplus in the government budget c. a decrease in gover...
Assume that Germany's macroeconomic equilibrium is currently greater than potential GDP. The German government also starts a massive expansion of the railway system which will double the total leng...
A decrease in the price level in the aggregate expenditures model would: (a) decrease aggregate expenditures and real GDP. (b) increase aggregate expenditures and real GDP. (c) decrease aggregate e...
What are some factors which would cause a shift in either aggregate supply or aggregate demand? If our oil suppliers suddenly stopped selling oil to the U.S., which curve would shift? What would th...
For each of the following events, explain the effect, if any, on the position of the short-run and long-run aggregate supply curves and the aggregate demand curves. a. In the summer of 2003, a sing...
Aggregate demand is the total quantity of output: a. Demanded if the economy is in equilibrium, b. Demanded at alternative price levels in a given time period, c. Producers are willing and able to...
A stronger dollar will shift the U.S. aggregate demand curve to the [{Blank}] and [{Blank}] output demanded. a. right; decrease, b. right; increase, c. left; increase, d. left; decrease.
The aggregate demand is derived from which of the following conditions? a) By examining how government policies affect spending patterns. b) By examining how price changes affect interest rates and...
Which of the following tends to make aggregate demand decrease by more than the amount that consumer spending decreases? a. The crowding-out effect, b. The multiplier effect, c. The interest rate e...
In the long-run, an increase in aggregate demand increases the price level, but not real GDP. a. True b. False
Suppose the following table illustrates the values of real and potential GDP and the price level, if the Reserve Bank of Australia (RBA) does not change their current policy to be more contractiona...
A technological boom that creates an increased demand for new equipment can: a. Decrease aggregate demand but increase long-run aggregate supply, b. Increase both aggregate demand and long-run aggr...
If government increases taxes by the same amount, it increases government spending, there will be no effect on aggregate demand: the increase in government spending is offset by an equal decrease i...
What is the difference in the explanation of the shape of the aggregate demand curve (AD) and a single product demand curve (D)?
Keynes believed that there were "sticky" wages and that recessions are caused by: A. decreases in aggregate demand (AD) B. increases in prices C. increases in unemployment D. decreases in supply
What will be the effect of a fall in the exchange rate of CFA (Chartered Financial Analyst) on the aggregate demand curve of the Cameroon economy?
Based on the effect of the change in government purchases on equilibrium output, this economy's government-purchases multiplier is equal to (3, 0.5, 2, 1).
Suppose an economy is initially operating at full employment. An increase in aggregate demand that takes short-run equilibrium to a point beyond the economy's potential output most likely results i...
Classify the following situation as a supply or demand shock "Financial friction increase": a. A positive (temporary) supply shock, b. A positive demand shock, c. A negative demand shock, d. A nega...
Why is the AD curve downward sloping? a. The higher interest rate produced by a lower price level leads to more consumer spending, investment spending, and net exports. b. AD slopes downward for...
Suppose the President of the United States decides to increase government expenditure and reduce tax. Use a simple Keynesian diagram (Keynesian cross) to illustrate the impact on national output. A...
Other things equal, if the national incomes of the major trading partners of the United States were to rise, the U.S. A. aggregate demand curve would shift to the right B. aggregate supply curve wo...
a. Explain how one can find the aggregate demand curve. Use diagrams to support the answer. b. Why is the aggregate demand curve sloping downward? c. Provide one example where the aggregate demand...
a. What happens to the number of net exports demanded? b. What happens to aggregate demand?
If domestic prices decrease relative to the prices of Australia's trading partners, what will be the effect on the aggregate demand curve?
Explain how the fall of domestic households purchasing new houses affects the aggregate demand curve.
Every coffee shop in Jitterville has a fixed cost of $25 per day, a capacity of 25 cups of coffee per day, and a variable cost of $1.00 per cup of coffee. There are 110 coffee drinkers in Jittervil...
One of the justifications for a downward sloping AD curve is the wealth effect. What is the difference between the wealth effect and the income effect, which justifies the downward sloping demand c...
The world demand for power transmission wire is made up of both domestic and foreign demands. Thus, the total demand is the sum of the two sub-demands, which are given as: Inverse domestic demand:...
The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustration...
Identify the impact of each of the following trends on aggregate demand. a) The federal government cuts taxes for low-income households. b) There is a slump in share prices on Canadian stock mark...
What are the two channels through which the world economy can affect U.S. aggregate demand?
A government is currently operating with an annual budget deficit of $40 billion. The government has determined that every $10 billion deduction in the amount of bonds it issues each year would red...
When students increase their enrollment in colleges (which has been the case in the last 20 years), Aggregate Demand (AD) is expected to shift to the right. Which component of AD do you think your...
The long-run aggregate demand curve can never shift. True False
Either a decrease in the nominal money supply by the Federal Reserve, all else held constant, or an increase in the price level, all else held constant, will shift the aggregate demand (AD) curve t...
What are the four key components that made up a macroeconomy under the expenditure approach and which one of the four is related to disposable personal income (DPI)? Be sure to state how? In other...
What are the benefits of falling aggregate demand?
Who controls supply and demand?
The price of ball bearings needed to make rollerblades rises sharply. How will this affect the rollerblade market?
Cindy Ross buys a dinner in an Italian restaurant in Toronto. This expenditure is an example of (a) consumption. (b) investment. (c) government purchase. (d) net exports.
Create an account to browse all assets today