What is the relationship between the price level and the following components of aggregate demand? a. There is (a negative/no/ a positive) relationship between the price level and consumption. b. There is (a negative/no/ a positive) relationship between the price level and investment. c. There is (a negative/no/ a positive) relationship between the price level and government spending. d. There is (a negative/no/ a positive) relationship between the price level and net exports.

What is the relationship between the price level and the following components of aggregate demand? a. There is (a negative/no/ a positive) relationship between the price level and consumption. b. There is (a negative/no/ a positive) relationship between the price level and investment. c. There is (a negative/no/ a positive) relationship between the price level and government spending. d. There is (a negative/no/ a positive) relationship between the price level and net exports.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Aggregate Demand And Supply

Section: Chapter Questions

Problem 2SQ

See similar textbooks

Similar questions

Which of the following would not increase Aggregate Demand? a. Increased Consumption b. Increased Government Expenditure c. Increased Investment Expenditure d. Decrease in the overall price level
Which of the following is not a component of the aggregate demand curve?a.Government spending(G)b.Investment(I)c.Consumption(C)d.Net Exports(X-M)e.Saving
Which of the following is not a component of the aggregate demand curve? a.Government spending(G) b. Investment (I) c. Consumption (C) d. net exports (X-M) e. Savings
Which of the following is not a component of aggregate demand? A. Consumption B. Net Exports C. Interest Rates D. Investment E. Government Spending
Which of the following shifts aggregate supply to the right? a. a decline in the price of imported natural resources b. a technological advance c. an older labor force that leaves jobs less frequently d. All of the above are correct.
A number of macroeconomic variables decline during recessions. One of these variables is the GDP. 1. What other variables, besides real GDP, tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in these economic variables which are to be expected. 2. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend in spite of the cycles?
Which of the following is a major influence on Aggregate Supply? Select one: a. The advice of government b. Consumption c. Government spending d. The quality of the factors available
Which of the following is true of the change in the quantity of aggregate output demanded? a.The change in the quantity of aggregate output demanded depends only on how much the aggregate expenditure line shifts. b.The change in the quantity of aggregate output demanded depends only on the change in investment demand. c.The change in the quantity of aggregate output demanded depends only on the change in government spending. d.The change in the quantity of aggregate output demanded depends only on the change in interest rates.
Using aggregate demand and aggregate supply, graph the effects on the price level and GDP of each of the following. Draw a large graph and label all axes, initial and final equilibrium points, direction of shift if any, all curves and lines, equilibrium values on the x- and y-axes. State the conclusion in words. a. A cut in income taxes b. An increase in military spending c. A drop in export demand by foreign purchasers d. An increase in imports e. A decline in business investment spending
What are the determinants of the Consumption element of Aggregate Demand? It’s crucial to explain and use examples please!
State the main components of the aggregate demand in the economy
Determine whether each of the following, 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: a. A decrease in government purchases b. An increase in net taxes c. A reduction in transfer payments d. A decrease in the marginal propensity to consume.