Multiple Choice
By looking at aggregate demand via its component parts,we can conclude that the aggregate demand curve is downward sloping because
A) a lower inflation rate causes the real interest rate to fall,and stimulates planned investment spending.
B) a lower inflation rate causes the real interest rate to rise,and stimulates planned investment spending.
C) a higher inflation rate causes the real interest rate to fall,and stimulates planned investment spending.
D) a higher inflation rate causes the real interest rate to rise,and stimulates planned investment spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q12: In the long-run equilibrium<br>A)output is a function
Q13: According to aggregate demand and supply analysis,the
Q14: Suppose the economy is producing at the
Q15: The fact that an economy always returns
Q16: Which of the followings does NOT shift
Q18: Suppose the economy is producing at the
Q19: Which of the followings is NOT true
Q20: The more willing monetary policymakers are to
Q21: A positive supply shock causes _ to
Q22: A temporary supply shock that raises prices<br>A)will