The Market Demand Curve

question 86

Multiple Choice

The market demand curve

• A)and the individual demand curve are synonymous.
• B)is calculated by multiplying the number of consumers by the individual demand curve.
• C)shows how the total quantity demanded of some good changes as price changes, other things held constant.
• D)can be calculated even if individual demand curves are unknown.

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Definitions:

Supply-siders

Supply-siders are economists or policymakers who believe that reducing tax rates and regulatory barriers to production and investment can stimulate supply, leading to economic growth.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to produce at different price levels during a specific time period.

Automatic Stabilizers

Changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action

Budget Deficit

A situation where a government's expenditures exceed its revenues over a specific period of time.