The Shape of the Aggregate Demand Curve Does Not Tell

question 133

Multiple Choice

The shape of the aggregate demand curve does not tell us anything about how the total dollar value of spending will ultimately be divided between output and prices. For this we need

• A)information about the standard of living in the country.
• B)information that only the Consumers' Price Index can provide.
• C)an aggregate supply curve.
• D)to know how far from the origin the aggregate demand curve is.

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Definitions:

Absolute Value

The distance of a number from zero on the number line, without regard to direction, represented as |x|.

Function

A correspondence between an array of inputs and a choice of outputs, with the rule that each input associates with just one output.

Speed

The rate at which an object moves, calculated as distance traveled per unit of time.

\(f ( x )\)

A symbolic representation of a function in terms of \(x\), where \(f\) denotes the function and \(x\) represents the variable.