What is measured on the horizontal axis on the aggregate demand graph?
A) nominal income B) real GDP per year C) unemployment D) the price level
B
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For a given set of prices, two consumers choose bundles that are off the contract curve. In a competitive market,
A) prices will adjust until the consumers choose bundles that are on the contract curve. B) the indifference curves will shift back to the contract curve. C) the contract curve will shift to connect these bundles. D) no adjustments need to be made.
Which of the following is true regarding the "American Recovery and Reinvestment Plan"?
A. Critics argued that in order to pay the deficits created by the plan, the government would be forced to raise taxes and cut spending, which would reverse the boost from the stimulus. B. The massive 2009 stimulus package was designed to jump-start the recession-bound economy. C. Critics argued that the massive deficits generated by President Obama's plan would undermine America's financial stability. D. All of the choices are correct.