One explanation for the slope of the aggregate demand curve is that:
a. nominal income falls and so does the demand for goods and services as prices rise
b. falling prices make people feel poorer and reduce spending.
c. the government spends less to drive the price level back to normal as prices rise.
d. businesses increase spending when inflation is high and rising.
e. domestic goods become more expensive relative to foreign goods when prices rise, reducing exports.
e
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What is meant by the statement "People trade, not nations."
What will be an ideal response?
According to the equation of exchange, if total output is 2,000 units, the velocity of money is 5, and the money supply is $1,000, the average price per transaction will be
a. $0.50. b. $2.50. c. $5.00. d. $7.50.
Keynes thought the Great Depression had been caused by a collapse in _____.
Fill in the blank(s) with the appropriate word(s).
According to Edward Chamberlin, is the "differentness" of products a waste of resources? Explain
What will be an ideal response?