--%>

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 : Income elasticity and inferior goods

    Raises in real income that causes the demands for: (i) inferior goods to shift upward and to the left. (ii) normal goods to shift upward and to the right. (iii) substitute goods to shift upward and to the right. (iv) complementary goods to decline mor

  • Q : Collapse of Cartels A purpose NOT often

    A purpose NOT often cited for the collapse of cartels would be: (w) price cheating. (x) inability to deter entry. (y) government prosecution. (z) merger into monopoly. Hey friends please give your opinion for the p

  • Q : Estimate price cross-elasticities of

    When the prices rise of Comfort shoes rise through two percent, causing Wonder sock sales to fall through six percent, these goods are _____, and _____ is about the cross price elasticity of demand. (1) luxuries;  6. (2) necessities; 2. (3) subst

  • Q : Use of Loren Curve A Lorenz curve can

    A Lorenz curve can be utilized to demonstrate the: (w) functional distribution of income. (x) income necessary to maintain specified living standards. (y) demand for low wage labor. (z) cumulative percentage of income received by cumulative percentage

  • Q : Profits of monopoly firm A monopoly

    A monopoly firm's profits: (w) equal only normal profits in long-run equilibrium. (x) may be whatever level the firm wishes. (y) are maximized where MC = MR. (z) tend to be lower than that of pure competitors. Hell

  • Q : Long-run economic losses in a

    Expectations of long-run economic losses within a competitive industry as: (1) inevitably follow “cut throat” pricing policies. (2) cause firms to leave the industry. (3) increase each firm’s long-run fixed costs. (4) create pressure

  • Q : Competition from poor substitutes A

    A firm in an industry which is a pure monopoly faces as: (w) many competitors from into the industry. (x) competition from only poor substitutes produced in other industries. (y) a market demand curve which is horizontal. (z) prosecution when it impor

  • Q : Horizontal individual demand curves The

    The market demand curve is recognized by: (i) Vertically summing up individual demand curves. (ii) Graphing intersections of demand and supply over time. (iii) Holding quantity constant while summing up each price on demand curve. (iv) Horizontally summing up individu

  • Q : Legal barriers to entry Patents are

    Patents are illustrations of: (a) legal economies of substitution. (b) legal barriers to entry. (c) natural barriers to entry. (d) marginal diseconomies of scale. Can someone explain/help me with best solution about problem of

  • Q : Enhancing society economic efficiency

    Society-extensive economic efficiency is most probable to be improved by: (1) competitive advertising. (2) cooperation between firms in a cartel. (3) increases in asymmetric information. (4) informative advertising. (5) wage and price controls. <