Multiple Choice
The AD curve ______ because, holding all else constant, an increase in ______ causes C, IP and NX to fall.
A) slopes downward; real GDP
B) slopes downward; the inflation rate
C) slopes upward; real GDP
D) is horizontal; the inflation rate
Correct Answer:

Verified
Correct Answer:
Verified
Q11: Technological improvements:<br>A)decrease aggregate demand.<br>B)increase aggregate demand.<br>C)decrease aggregate
Q13: Graphically, short-run equilibrium occurs at the intersection
Q13: A sudden change in the normal behavior
Q14: For a given inflation rate, if bright
Q15: Refer to the figure below.The current level
Q17: When the inflation rate increases, PAE _,
Q18: Starting from potential output, if firms become
Q20: Due to menu costs, many firms in
Q111: Inflation inertia is the tendency for inflation
Q153: High expected inflation leads to _ increases