--%>

Aggregate demand curve

Choose the right answer from following. The aggregate demand curve is: A) vertical if full employment exists. B) horizontal when there is considerable unemployment in the economy. C) downsloping because of the interest-rate, real-balances, and foreign purchases effects. D) downsloping because production costs decrease as real output rises.

   Related Questions in Microeconomics

  • Q : Good illustration of oligopoly The

    The tobacco industry within the United States is a good illustration of: (1) monopoly. (2) pure competition. (3) oligopoly. (4) corporate responsibility. (5) duopoly. I need a good answer on the topic of Economics

  • Q : Income elasticity of demand when

    When average income rises from $18,000 to $22,000 yearly and yearly gasoline consumption per household increases from 1000 to 1500 gallons, in that case the income elasticity of demand for gas is: (1) in the inferior range. (2) 0.5. (

  • Q : Labor Contracts-Agreement of shops I

    I have a problem in economics on Labor Contracts-Shop Agreements. Please help me in the following question. The union leaders would tend to favor the contract clause needing: (1) A sweat shop. (2) An agency shop. (3) A union shop. (4) An open shop.

  • Q : Maximized output level and zero

    When all production costs for a monopoly are fixed [MC =0], in that case economic profit: (i) falls when price is raised in the inelastic range of a demand curve. (ii) rises when price is cut in the inelastic range of

  • Q : Patent new invention included in

    Predatory behavior would not comprise: (w) aggressive advertising. (x) monopolizing access to essential resources. (y) lowering prices. (z) getting a patent on a new invention which is likely to start a new industry.

    Q : Oligopolistic nature of industries The

    The oligopolistic nature of several industries is probably to be attributable to: (1) overly expansionary macroeconomic policies. (2) corporate instability. (3) economies of scale. (4) cooperative gaming. (5) unstable Nash equilibrium.

    Q : Revenue receipts treated as legally

    Which kind of revenue receipts are considered as legally compulsory payment imposed on people by the government? Give illustration also. Answer: Taxes imposed on th

  • Q : Problem onto Saving and Spending Money

    The owners of a construction company would not be saving when they collected a big check after finishing a project and after that bought: (w) a long term certificate of deposit at their local bank. (x) stock in a newly-formed corporation. (y) a corporate jet for use o

  • Q : Holding less liquid assets in investment

    When households become more willing to hold less liquid assets, in that case the: (w) interest rate rises. (x) present value of future income falls. (y) interest rate falls. (z) stock market will crash. I need a go