Multiple Choice
All of the following are reasons for the downward-sloping aggregate demand curve except
A) as the price level decreases, the quantity demanded of real GDP decreases because goods and services are more expensive.
B) as the price level increases, the real value of household wealth declines, reducing consumption.
C) a higher price level increases the demand for money, causing an increase in the interest rate which reduces spending on investment goods and consumer durables.
D) if the price level rises in a country relative to price levels in other countries, net exports will decrease in the original country.
Correct Answer:

Verified
Correct Answer:
Verified
Q32: If potential GDP for the first quarter
Q33: List three reasons why nominal wages can
Q34: A shock that increases the costs of
Q35: What is the multiplier effect and when
Q36: If households spend $0.40 of each additional
Q38: One reason why an economy may not
Q39: If potential GDP for the fourth quarter
Q40: From 1950 to 2009,the average length of
Q41: Explain what a macroeconomic shock is,and give
Q42: If the money supply is decreasing,real GDP