Multiple Choice
The open economy effect and interest rate effect are two of the reasons why
A) higher price levels increase long-run aggregate supply.
B) the aggregate demand curve slopes downward.
C) capital formation does not contribute to economic growth in poor countries.
D) growth of the labor force does not contribute to economic growth in wealthy countries.
Correct Answer:
Verified
Correct Answer:
Verified
Q24: If your income stays the same and
Q25: The interest rate effect shows that if
Q26: What pattern would you observe in an
Q27: The real-balance effect indicates that at higher
Q28: Economic growth is represented on the aggregate
Q30: Economic growth causes the<br>A) production possibilities curve
Q31: When total planned real expenditures change due
Q32: The downward slope of the aggregate demand
Q33: Holding nominal money balances constant, a decrease
Q34: The long run aggregate supply curve is