When the price level increases, aggregate planned expenditure ________ and equilibrium real GDP ________. As a result, in the AS-AD model, the aggregate demand curve has a ________ slope
A) increases; decreases; negative
B) decreases; decreases; negative
C) decreases; increases; negative
D) increases; increases; positive
E) decreases; decreases; positive
B
You might also like to view...
Analysis that aims at determining only the economic consequences of a particular policy is called ________ analysis.
A. fiscal B. normative C. monetary D. positive
As a person's wage rate increases, the substitution effect motivates an increase in work and the income effect motivates a decrease in work
Indicate whether the statement is true or false
What are the three types of gains from international transactions between the residents of different countries?
What will be an ideal response?
According to historical data, what is the effect of a sharp change in the current account on the exchange rate (both in the short and long run)?
A) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to depreciate. B) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to depreciate. C) At first, home currency will appreciate as CA balance rises, but over time, currency will begin to depreciate. D) At first, home currency will depreciate as CA balance falls, but over time, currency will begin to appreciate. E) At first, home currency will appreciate as CA balance falls, but over time, currency will begin to appreciate.