When Plotted with the Aggregate Price Level on the Vertical

question 98

Multiple Choice

When plotted with the aggregate price level on the vertical axis and output on the horizontal axis,the aggregate demand curve

• A)slopes upward.
• B)slopes downward.
• C)is vertical.
• D)is horizontal.

---

Definitions:

Public Park

A piece of public land in urban areas designated for recreational use by the general public, often maintained by local government.

Socially Optimum

A state where resources are allocated in the most efficient way from a societal perspective, maximizing social welfare.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often discussed in the context of public goods and services.

Pigouvian Subsidy

A payment designed to encourage activities that yield external benefits.