If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand rises, and aggregate supply falls.
b. Aggregate demand and aggregate supply rise.
c. Aggregate demand and aggregate supply fall.
d. Neither aggregate demand nor aggregate supply change.
e. Aggregate demand falls, and aggregate supply rises.
.E
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According to the new classical view, aggregate output will differ from full-employment output
A) whenever saving does not equal investment. B) only if the actual price level does not equal the expected price level. C) only if the federal government's expenditures are greater than its tax receipts. D) whenever imports exceed exports.
The product of ____________________ and _________________ is equal to the total amount of spending in an economy
A) the money supply; the price level B) velocity; the price level C) the money supply; velocity D) velocity; the level of output