Aggregate demand

a) measures the amount of a nation's labor, capital and and technology that people are willing to buy.

b) increases when the price level falls.

c) measures the amount of a nation's goods and services that people are willing to buy.

d) is a relationship between the quantity of real GDP demanded and the price level.

e) both C and D are correct.

Which one of the following newspaper quotations describes a movement along anLAScurve?

"The recent tornadoes destroyed many factories in Calgary and Edmonton."

"The decrease in consumer spending may lead to a recession."

"Recent higher wage settlements are expected to cause higher inflation this year."

"Growth has been unusually high the last few years due to more women entering the labour force."

"The increase in consumer spending is expected to lead to inflation, without any increase in real GDP."

Which one of the following newspaper quotations describes a leftward shift of theLAScurve?

"The decrease in consumer spending may lead to a recession."

"Recent higher wage settlements are expected to cause higher inflation this year."

"The recent tornadoes destroyed many factories in Calgary and Edmonton."

"The increase in consumer spending is expected to lead to inflation, without any increase in real GDP."

"Growth has been unusually high the last few years due to more women entering the work force."

We observe an increase in the price level and a decrease in real GDP. Which of the following is a possible explanation?

An increase in the quantity of money.

An increase in expected future income.

An increase in expected future profits.

An increase in factor prices.

An increase in the quantity of capital.

The multiplier can take on any value

only between -1 and 1.

only between 1 and 2.

only between zero and 1.

only greater than 1.

greater than zero.

The slope of the consumption function is

less than the slope of the 45 line.

one.

zero.

greater than the slope of the 45 line.

equal to the slope of the 45 line.