A decrease in the price level causes households to purchase more goods and services. This is illustrated
Question:
A decrease in the price level causes households to purchase more goods and services. This is illustrated on the AD/AS model as a shift of the aggregate demand curve to the right.
Select one:
True
False
A realistic unemployment rate in the U.S. that corresponds with a real GDP growth rate of 0.5 percent growth would be a rate that is above 5 percent.
Select one:
True
False
Suppose a stock market crash makes people feel less wealthy. The decrease in wealth would cause people to decrease consumption, which shifts the aggregate demand curve to the left.
Select one:
True
False
The aggregate demand curve slopes downward because lower prices cause real wealth to increase, interest rates to decrease, and consumption to increase.
Select one:
True
False
A decrease in the money supply will cause the long-run aggregate supply curve to shift to the left because of the presence of monetary neutrality.
Select one:
True
False
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez