A graph measures y on the vertical axis and x on the horizontal. The curve on the graph is a horizontal line. From this fact we know that
A) the value of x never changes.
B) the value of y does not depend on the value of x.
C) the ratio of x to y is constant.
D) the slope of the line is not defined because y never changes.
B
You might also like to view...
The quantity of real GDP demanded on the AD curve is the equilibrium real GDP when
A) equilibrium expenditure is greater than real GDP. B) aggregate planned expenditure equals real GDP. C) the price level equals the equilibrium price level. D) aggregate planned expenditure is greater than real GDP. E) aggregate planned expenditure is less than real GDP.
The practical significance of the multiplier is that it:
A. equates the real interest rate and the expected rate of return on investment. B. magnifies initial changes in spending into larger changes in GDP. C. keeps inflation within tolerable limits. D. helps to stabilize the economy.