Author Question: Opportunity cost is defined as the A) total value of all the alternatives given up B) ... (Read 37 times)

cookcarl · **on:** Jun 29, 2018

Opportunity cost is defined as the

A) total value of all the alternatives given up
B) highest-valued alternative given up
C) cost of not doing all of the things you would like to do.
D) lowest-valued alternative given up

Question 2

Explain the difference between a movement along the aggregate demand curve and a shift of the aggregate demand curve.

What will be an ideal response?

Leostella20 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

B

Answer to Question 2

There is a movement along the aggregate demand curve if there is a change in the price level. If some factor that affects aggregate demand other than the price level changes, such as monetary or fiscal policy, income in the rest of the world, or expectations, there is a shift in the aggregate demand curve.