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Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
Edition 20ISBN: 978-0077660772 Exercise 28
The AD curve slopes downward because:
A) per-unit production costs fall as real GDP increases.
B) the income and substitution effects are at work.
C) changes in the determinants of AD alter the amounts of real GDP demanded at each price level.
D) decreases in the price level give rise to real-balances effects, interest-rate effects, and foreign purchases effects that increase the amount of real GDP demanded.
A) per-unit production costs fall as real GDP increases.
B) the income and substitution effects are at work.
C) changes in the determinants of AD alter the amounts of real GDP demanded at each price level.
D) decreases in the price level give rise to real-balances effects, interest-rate effects, and foreign purchases effects that increase the amount of real GDP demanded.
Explanation
Verified
Verified
Hence, the correct answer is d. decrease...
Macroeconomics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn
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