The downward slope of the aggregate demand curve shows that
A) a higher price level will cause planned purchase rates for final goods and services to be higher.
B) an increase in aggregate demand reduces the long-run aggregate supply.
C) a lower price level will cause planned purchase rates for final goods and services to be higher.
D) an increase in aggregate demand increases the long-run aggregate supply.
C
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Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force participation rate is approximately
A) 4 percent. B) 48 percent. C) 52 percent. D) 56 percent.
Which of the following is most likely to lead to an increase of 1% in the nominal demand for money?
A) An increase in real income of 0.5% B) A decrease in real income of 0.5% C) A decline of 1% in the price level D) An increase of 1% in the price level