Which of the following sequences results from an increase in the price level?
a. the money demand curve shifts leftward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve.
b. the money demand curve shifts rightward, the interest rate increases, investment spending and autonomous consumption decrease, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve.
c. the money demand curve shifts leftward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve.
d. the money demand curve shifts leftward, the interest rate drops, investment spending and autonomous consumption decrease, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve.
e. the money demand curve shifts rightward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward and there is a rightward movement along the aggregate demand curve.
B
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A country's CPI was 84.5 last year and 100.0 this year. The inflation rate was
A) 84.5 percent. B) 18.3 percent. C) 15.5 percent. D) 7.29 percent. E) -18 percent.
________ is a situation in which a good or service is produced at the lowest possible cost
A) Allocative efficiency B) Productive efficiency C) Equity D) Optimal marginalism