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    Principles of Macroeconomics Study Set 18
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    Exam 13: Aggregate Demand, Aggregate Supply, and Business Cycles
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    The AD Curve ______ Because, Holding All Else Constant, an Increase
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The AD Curve ______ Because, Holding All Else Constant, an Increase

Question 16

Question 16

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

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