"The aggregate demand multiplier results in the aggregate demand curve shifting by more than any given initial change in expenditure." Is the previous statement correct or incorrect?
What will be an ideal response?
The statement is correct. The implication is that a, say $10 billion increase in investment shifts the aggregate demand curve rightward by more than $10 billion.
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If the aggregate supply curve is positively sloped, an increase in the money supply will result in an increase in both equilibrium national income and the equilibrium price level
a. True b. False Indicate whether the statement is true or false
Which of the following statement(s) is (are) false?
A) The slope of any indifference curve is the MRS. B) The slope of any budget line is negative and related to the ratio of the prices of the goods. C) The slope of any linear demand curve is the own-price elasticity. D) None of the above (that is, all statements are true).