The Aggregate Demand Curve Is

question 61

Multiple Choice

The aggregate demand curve is

• A)vertical if full employment exists.
• B)horizontal when there is considerable unemployment in the economy.
• C)downward sloping because of the interest rate,wealth or real balances,and foreign-purchases effects.
• D)downward sloping because production costs decrease as real domestic output increases.

---

Definitions:

Total Cost

The complete cost of production that combines all costs, both fixed and variable, incurred to produce goods or services.

Change

The act or process of becoming different, which can apply to a wide variety of contexts, including physical alterations, shifts in ideas, or modifications in systems.

Average Total Cost

The total cost of production divided by the number of goods produced, representing the average cost per unit of output.

Diseconomies of Scale

A situation where as a firm grows larger, the costs per unit increase, due to factors like coordination and operational inefficiencies.