Other Things Being Equal, the Economy's Aggregate Demand Curve Shows

question 248

Multiple Choice

Other things being equal, the economy's aggregate demand curve shows that

• A) as the price level falls, total planned expenditures fall as well.
• B) a change in the general price level causes the curve to shift.
• C) a change in the general price level causes a change in the quantity of final goods and services purchased.
• D) real Gross Domestic Product (GDP) and the price level are not related.

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Definitions:

National Ambient Air Quality Standards

Set by the Environmental Protection Agency (EPA), these standards limit the amount of key air pollutants allowed in outdoor air across the United States to protect public health and the environment.

Toxic Substances Control Act

A U.S. law, enacted in 1976, aimed at regulating the introduction of new or already existing chemicals.

Federal Insecticide, Fungicide, and Rodenticide Act

A United States federal law passed in 1947 that provides federal control of pesticide distribution, sale, and use.

Clean Water Act

A U.S. federal law aimed at regulating the discharge of pollutants into the nation's surface waters, including lakes, rivers, streams, and coastal areas.