All of the following explain the downward slope of the aggregate demand curve EXCEPT
A. the availability of foreign substitute goods.
B. the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods.
C. changes in the stock of real wealth held by individuals.
D. the presence of unused production capacity and unemployment.
Answer: D
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What is the key macroeconomic issue of the short run and what is the key macroeconomic issue of the long run?
What will be an ideal response?
Taiwan and South Korea are examples of developing nations that have recently pursued these industrialization policies
A) import substitution. B) export promotion. C) commercial dumping. D) multilateral contract. E) trade embargoes.
The price elasticity of demand coefficient for a good will be greater:
a. if close substitutes exist. b. if minor complements exist. c. in the short-run. d. if a small portion of the budget will be spent on it.
If real GDP is greater than planned aggregate spending:
A. real GDP will fall. B. unplanned inventory investment is negative. C. real GDP will rise. D. the economy is in equilibrium.