Multiple Choice
An increase in the price level might cause:
A) a decrease in the quantity of aggregate demand because of the substitution effect.
B) an increase in the quantity of aggregate demand because of the money wealth effect.
C) a decrease in the quantity of aggregate demand because of the interest rate effect.
D) an increase in the quantity of aggregate demand because of the multiplier effect.
Correct Answer:

Verified
Correct Answer:
Verified
Q81: Assuming the economy is in long-run equilibrium,using
Q82: If the price level had more flexibility,would
Q83: Keynes believed that:<br>A)the government could not aid
Q84: Refer to the following diagram. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7143/.jpg"
Q85: Refer to the graph shown. A movement
Q87: A fall in the U.S. price level
Q88: A decrease in the expected future income
Q89: Keynes did not agree with the way
Q90: If actual output exceeds potential output for
Q91: In the AS/AD model, as the price