Say the average level of prices of goods and services in an economy is decreasing. How do we define this?

If your nominal income rises faster than the price level,

Government addressing unemployment and inflation using spending and taxes to shift aggregate demand is a suggestion of what historical economic thought?

Say it is getting more expensive to produce goods in an economy so producers increase their prices to keep up with those costs.   Select from the following what best describes what will immediately result from this, ceteris paribus.

The components of aggregate demand are very important for our aggregate demand models. Which of the following lists each of them?

A positive outlook about next year’s profits can cause more investment spending.

Keynes argued that, contrary to Classical theories,

Two of the four types of unemployment are present when an economy is operating at its “natural rate of unemployment”. Select them from the following list.

Rising wealth does what to our aggregate demand and supply model?

Structural unemployment is outlined in our book as which of the following?