The Four Components of the Aggregate Demand Curve Are

question 4

Multiple Choice

The four components of the aggregate demand curve are:

• A) consumption, inventories, government purchases and net exports.
• B) consumption, inventories, government spending and exports.
• C) land, labor, capital, and technology.
• D) consumption, investment, government purchases and net exports.

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Definitions:

Profit-maximizing Monopolist

A monopolist who determines the quantity of output and price levels that result in the highest possible profits, given its unique market power.

Downward-sloping Demand Curves

A graph showing that as the price of a good decreases, the quantity demanded increases, illustrating the inverse relationship between price and demand.

Market Power

The ability of a firm or entity to influence the price or control the availability of products or services in a market.

DeBeers

A global corporation specializing in diamond exploration, mining, retail, and trading, known for its historical monopoly over the diamond market.