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The Wealth Effect, the Interest Rate Effect, and the International

Question 113

Multiple Choice

The wealth effect, the interest rate effect, and the international trade effect account for the:


A) positive slope of the short-run aggregate supply curve.
B) the shape of the long-run aggregate supply curve.
C) positive slope of the aggregate demand curve.
D) negative slope of the aggregate demand curve.
E) negative slope of the short-run aggregate supply curve.

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