Multiple Choice
Which of the following is true regarding the aggregate demand curve?
A) It is vertical at the full-employment level of GDP.
B) It is horizontal when there is considerable unemployment in the economy.
C) It is downward-sloping because of the interest-rate,real balances,and foreign-trade effects.
D) It is downward-sloping because production costs decrease as real output increases.
E) It is upward-sloping because as output increases,aggregate expenditures increase.
Correct Answer:
Verified
Correct Answer:
Verified
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