Which of the following is NOT true about the aggregate demand curve?
A. The aggregate demand curve shows total planned real expenditures at different price levels.
B. The aggregate demand curve considers the entire circular flow of income.
C. Changes in the economic conditions in other countries will lead to a shift of the aggregate demand curve.
D. The production possibilities curve determines the slope of the aggregate demand curve.
Answer: D
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The principle that "as one input increases while the other inputs are held fixed, output increases at a decreasing rate" is known as the
A) marginal principle. B) principle of diminishing returns. C) principle of opportunity cost. D) spillover principle.
Jack lost his job six months ago, and he's been actively looking for a new job ever since. The Bureau of Labor Statistics would classify Jack as
A) a discouraged worker. B) unemployed. C) out of the labor force. D) all of the above.