The primary difference between the aggregate demand curve and an individual demand curve is that
A. the aggregate demand curve represents total planned expenditures on all goods and services while an individual demand curve represents a single good or service.
B. a change in the price level will shift the aggregate demand curve but not an individual demand curve.
C. the aggregate demand curve is vertical in the long? run, while an individual demand curve is downward sloping.
D. a change in real balances will shift an individual demand curve but not the aggregate demand curve.
Ans: A. the aggregate demand curve represents total planned expenditures on all goods and services while an individual demand curve represents a single good or service.
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Which of the following policies encourages economic growth?
A) increased taxes on income and business profits B) limiting the years people spend in education so that they can start productive work C) reduction of government support of higher education D) creation of tax free savings accounts E) high tariffs and strict import quotas on foreign-made products
Price equals the minimum of long-run average cost
A) in a long-run equilibrium. B) in a short-run equilibrium as well as in a long-run equilibrium. C) whenever average revenue equals marginal cost. D) along a horizontal long-run supply curve, but not along an upward sloping long-run supply curve.