The Yd(IS) curve is downward sloping to reflect the
A) positive relationship between aggregate output and total factor productivity.
B) positive relationship between aggregate output and employment.
C) positive relationship between aggregate output and the real wage rate.
D) negative relationship between aggregate output and the real interest rate.
E) negative relationship between aggregate output and the real wage rate.
Correct Answer:
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Q14: When the central bank targets the interest
Q15: The Yd(IS)curve in the New Keynesian model
Q16: In 1936,Keynes described his views on the
Q17: In the New Keynesian model,an increase in
Q18: In the long run,most Keynesians believe
A) government
Q20: The main difference between the New Keynesian
Q21: Investment demand shocks in the New Keynesian
Q22: In the New Keynesian model,an increase in
Q23: An increase in the demand for investment
Q24: The advantage of government intervention when a
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