The aggregate demand curve is downward-sloping because, other things being equal,
A. People buy more goods and services at higher average prices.
B. People buy fewer goods and services at lower average incomes.
C. A higher average price level will induce producers to offer more output than otherwise.
D. People buy more goods and services at lower average prices.
Answer: D
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Refer to the above figure. The equilibrium level of real GDP occurs
A) at point A. B) to the right of point A. C) to the left of point A. D) at the undetermined point on the graph depending upon the level of investment.
Which of the following is not a characteristic of market structure?
a. The number of sellers in the industry. b. The ease with which firms may enter or exit the industry. c. The existence of differences among sellers' products. d. The presence or absence of government taxation in the market.