We represent the demand in a market with a downward

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Unformatted text preview: d that the two sides to every market are a demand side and a supply side. We represent the demand in a market with a downward-sloping demand curve Section 4 Measuring Price Changes and the Unemployment Rate 303 11 (286-309) EMC Chap 11 11/17/05 6:06 PM ? Did President Kennedy Earn More than Today’s President? T oday, the president of the United States earns an annual salary of $400,000. In 1962, when John F. Kennedy was president, he earned $100,000. Would you say that the president today is paid four times more than President Kennedy was paid? At first glance, it may seem that today’s president is paid more than Kennedy. We need to keep in mind, however, that when Kennedy was president the prices of goods and services were much lower than today. In 1962, $100,000 would buy much more than $100,000 will buy today. The question is, would it aggregate demand curve A curve that shows the quantity of goods and services that buyers are willing and able to buy at different price levels. aggregate supply curve A curve that shows the quantity of goods and services th...
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