Which of the following is incorrect?
A) As the American average price level rises,American goods become relatively more expensive so that our exports fall and our imports rise.
B) As the average price level falls,the interest rate declines,and interest-rate sensitive spending increases.
C) When the average price level increases,real balances increase,businesses and households find themselves wealthier and therefore increase their spending.
D) An increase in aggregate supply tends to increase real domestic output and reduce the average price level.
Correct Answer:
Verified
Q49: Classical economists and monetarists perceive
A)investors' expectations about
Q50: We would expect the aggregate demand curve
Q51: According to the classical economists,an increase in
Q52: Unintended inventory changes
A)precipitate explosive inflations of highly
Q53: The principal cause of the Great Depression
Q55: Suppose our economy is in macroeconomic equilibrium
Q56: The aggregate demand curve shows a(n)
A)positive relationship
Q57: Classical economists believed that
A)if saving exceeded investment,prices
Q58: A curve depicting the relationship between the
Q59: The Keynesian point of view suggests that
A)supply
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