When Using the General Multiplication Rule,P (A and B)is Equal

question 10

Multiple Choice

When using the general multiplication rule,P (A and B) is equal to

• A)P(A|B)P(B).
• B)P(A)P(B).
• C)P(B)/P(A).
• D)P(A)/P(B).

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Definitions:

Price Level

The price level is an index that measures the average prices of goods and services across an economy, indicative of inflation or deflation.

Aggregate Demand Curve

A curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level.

Marginal Propensity

The additional amount that consumers are likely to spend out of an additional unit of income.

Consumption Function

A formula in economics that shows the link between overall consumption and the gross national income.