Unit_05_-_Chap_10_Quiz - Points Awarded Points Missed...

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10.00 Points Missed 0.00 Percentage 100% 1. The aggregate demand curve shows the: A) Inverse relationship between the price level and real GDP purchased. B) Direct relationship between the price level and real GDP produced. C) Inverse relationship between interest rates and real GDP produced. D) Direct relationship between real-balances and real GDP purchased. Points Earned: 1.0/1.0 Correct Answer(s): A 2. Other things being equal, the higher the price level, the lower the level of domestic output purchased. This occurs because of: A) Household indebtedness. B) The real-balances effect. C) A change in business taxes. D) Consumer spending on capital goods. Points Earned: 1.0/1.0 Correct Answer(s): B 3. Which set of events would most likely decrease aggregate demand? A) A reduction in the excess capital of the existing capital stock B) A reduction in business and personal tax rates. C) An increase in investment spending
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This note was uploaded on 10/08/2010 for the course ECON 002 taught by Professor Mcleod,markpehlivan,ayseozg during the Summer '08 term at Pennsylvania State University, University Park.

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Unit_05_-_Chap_10_Quiz - Points Awarded Points Missed...

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