Multiple Choice
The four components of the aggregate demand curve are:
A) consumption, inventories, government purchases and net exports.
B) consumption, inventories, government spending and exports.
C) land, labor, capital, and technology.
D) consumption, investment, government purchases and net exports.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: If the economy is in equilibrium at
Q2: The marginal propensity to consume is always
Q3: Using aggregate demand and aggregate supply curves,
Q5: Aggregate demand refers to the demand for
Q6: In the short- run, an increase in
Q7: An increase in the price level results
Q8: When output falls below full employment output,
Q9: If the marginal propensity to consume is
Q10: Compared to the long run aggregate supply
Q11: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" Figure 9.4 -Refer