The aggregate-demand curve is downward-sloping because of Pigou's wealth effect, Keynes's interest-rate effect, Mundell-Fleming's exchange-rate effect and Veblen's envy effect.
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Q10: An economy can produce more if it
Q11: The business cycle follows a regular and
Q12: Economic growth is:
A)bad for the economy as
Q13: When inflation is decreasing, prices are falling.
Q14: In the long run, the quantity of
Q16: The new Keynesian sticky-price theory suggests that
Q17: The slope of the AD curve only
Q18: A short period of falling incomes and
Q19: An increase in net lump-sum taxes shifts
Q20: An increase in inflation shifts the AD
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