Which of the following statements is true?
A) Aggregate demand and aggregate supply determine the equilibrium price and quantity of a single good.
B) The aggregate demand curve indicates a positive relationship between the price level and GDP.
C) The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price and quantity.
D) The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price level and the equilibrium level of real GDP.
E) Other things equal, a downward shift of the aggregate demand curve implies that the economy enters an expansionary phase.
Correct Answer:
Verified
Q1: Which of the following is not one
Q2: A reduction in resource prices tends to
Q4: Aggregate supply could increase due to all
Q5: Business cycles are linked to the interaction
Q6: The sum of consumption spending, investment, government
Q7: Household expenditures increase as a result of
A)
Q8: Which of the following would cause cost-push
Q9: Other things equal, an increase in aggregate
Q10: The aggregate demand curve
A) shows total spending
Q11: Other things equal, a decrease in aggregate
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