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1. The price index used to illustrate the aggregate demand curve is the nominal price index....

1.

The price index used to illustrate the aggregate demand curve is the

nominal price index.

gross domestic product (GDP) deflator.

consumer price index.

real price index.

producer price index.

2

The relationship between tax rates and tax revenue is

one of the most highly controversial in politics.

highly agreed upon in politics.

a positive correlation.

unknown for all levels of marginal tax rates.

a negative correlation.

3.

In a fiat money economy, money is created when

commercial banks make loans.

money in a savings account is transferred to a checking account.

more gold is discovered.

banks make deposits at the Federal Reserve.

individuals store cash at home instead of depositing it in the bank.

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Answer #1

1. Gross domestic product deflator

Gdp deflator is the price index used to measure aggregate demand.

2. one of the most highly controversial in politics

Tax rate and tax revenue is one of the most highly controversial in politics.

3. Commercial banks make loans

In a fiat money economy, money is created when commercial banks make loans.

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