Author Question: The aggregate demand curve shows: a. how the equilibrium level of aggregate expenditure changes in ... (Read 117 times)

tuffie · **on:** Jun 30, 2018

The aggregate demand curve shows:
a. how the equilibrium level of aggregate expenditure changes in response to changes in production.
b. the amount people spend at different real GDP levels.
c. the positive relationship between the price level and real GDP.
d. the negative relationship between aggregate expenditure and real GDP.
e. how the equilibrium level of aggregate expenditure changes as the price level changes.

Question 2

Which of the following would cause an increase in the demand curve for oranges?
a. a freeze in Florida (a major orange producing state)
b. a new machine that allows orange growers to harvest oranges faster
c. a decrease in the price of apples
d. an announcement by the FDA that oranges lowers cholesterol