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pinkhippopotamus992Lv1

29 Sep 2019

1. Consider the aggregate demand and supply model for a closed economy where net export is zero.

Aggregate demand consists of:

A. consumption, investment, government spending, and net exports.

B. consumption and imports.

C. consumption, investment, and government spending.

D. consumption, government spending, and net exports.

2. For the aggregate demand, income and the price level are:

A. inversely related.

B. both rising.

C. directly related.

D. both falling.

3. For the aggregate supply, in the short run, income and price level are:

A. directly related, but in the long-run, income is constant at full employment GDP.

B. indirectly related, but in the long-run, income is constant at full employment GDP.

C. directly related, but in the long-run, the price level is constant.

D. indirectly related, but in the long-run, the price level is constant.

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Prachi DabasLv10

29 Sep 2019

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