The loss in social surplus that occurs when the economy produces at an inefficient quantity is called
a. efficiency.
b. consumer surplus.
c. social surplus.
d. deadweight loss.
d. deadweight loss.
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Spending on the war in Afghanistan is essentially categorized as government purchases. How do increases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will move the economy up along a stationary aggregate demand curve. B) They will move the economy down along a stationary aggregate demand curve. C) They will shift the aggregate demand curve to the left. D) They will shift the aggregate demand curve to the right.
The aggregate demand curve
a. is identical to the AE curve. b. shows the amounts of real output that will be demanded at various price levels. c. shows the amount of real output that will be demanded at various levels of income. d. shows the amount of income that will be earned at various price levels.