In the First Part of This Decade the U

question 23

Multiple Choice

In the first part of this decade the U.S.government went from a surplus to a deficit.Other things the same,this means the

• A)supply of loanable funds shifted right.
• B)supply of loanable funds shifted left.
• C)demand for loanable funds shifted right.
• D)demand for loanable funds shifted left.

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Definitions:

Nominal GDP

GDP based on prices prevailing at the time of production.

Price Level

A measure of the average prices of goods and services in an economy at a specific point in time.

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level in an economy and the total demand for goods and services at that price level.

Aggregate Demand Curve

A graphical representation that shows the total quantity of goods and services that all buyers in an economy (including consumers, businesses, and government) are willing and able to purchase at different price levels.