The interest rate effect is part of the reason
A. the aggregate demand curve is downward sloping.
B. the short-run aggregate supply curve is upward sloping.
C. the long-run aggregate supply curve is vertical.
D. the aggregate demand curve is upward sloping.
Answer: A
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Consumers of most goods usually experience diminished satisfaction in each additional unit consumed. However, when variety appears endless, this may not be the case. Consider manufactured goods between 1890 and 1910
Indicate whether the statement is true or false
The classical model
a. is another name for the short-run macro model b. was developed to explain the long period of poor economic performance during the Great Depression c. is an attempt to explain why the economy tends to perform rather well over long periods of time d. is believed by most economists to be a better explanatory model for short-term, rather than long-term, economic performance e. was not really accepted as a legitimate economic theory until the 1950s
Changes in the composition of demand among industries or regions are called sectoral shifts
a. True b. False Indicate whether the statement is true or false
Which of the following statements regarding the use of gold as money is false?
A) The money supply would be easy to control because of the predictability of new gold discoveries. B) It is durable. C) It has value other than money. D) It is acceptable to traders.