All of the following are reasons for the downward-sloping aggregate demand curve except
A) as the price level decreases, the quantity demanded of real GDP decreases because goods and services are more expensive.
B) as the price level increases, the real value of household wealth declines, reducing consumption.
C) a higher price level increases the demand for money, causing an increase in the interest rate which reduces spending on investment goods and consumer durables.
D) if the price level rises in a country relative to price levels in other countries, net exports will decrease in the original country.
Correct Answer:
Verified
Q60: If potential GDP for the fourth quarter
Q61: Which of the following schematics most accurately
Q62: Suppose for every dollar change in household
Q63: Suppose consumer confidence declines and as a
Q64: Suppose for every dollar change in household
Q66: What is the multiplier effect and when
Q67: If oil prices decrease,
A) the short-run aggregate
Q68: Explain whether sales of durable goods is
Q69: Suppose for every dollar change in household
Q70: Suppose consumer confidence declines and as a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents