The aggregate demand curve
a. is a horizontal line if the economy is perfectly competitive
b. depicts the economy's equilibrium output level at each possible price level
c. depicts the economy's equilibrium output at each possible interest rate
d. shifts whenever the price level changes
e. can slope upward if the Fed changes the money supply
B
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All of the following would cause the production possibilities curve to shift outward EXCEPT
A) an improvement in technology. B) an increase in the amount of labor available. C) a decline in the unemployment rate. D) an increase in the level of capital stock.
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
a. higher tax rates b. a higher rate of investment c. a smaller trade sector d. greater use of taxation to transfer income from the rich to the poor