The aggregate demand curve:
A. is upsloping because a higher price level is necessary to make production profitable as production
B. is downsloping because production costs decline as real output increases.
C. shows the amou
The group of three economists appointed by the President to provide fiscal policy recommendations is
A. Council of Economic Advisers.
B. Joint Economic Committee.
C. Bureau of Economic Analysis.
D. Federal Reserve Board of Governor
John Maynard Keynes created the aggregate expenditures model based primarily on what historical
A. Bank panic of 1907
B. Great Depression
C. Spectacular economic growth during World War II
D. Economic expansion of the 1920s
The most important determinant of consumer spending is:
A. the level of household borrowing.
B. consumer expectations.
C. the stock of wealth.
D. the level of income.
The most important determinant of consumption and saving is the: