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The aggregate demand curve is downward sloping because a decrease in the price

The aggregate demand curve is downward sloping because a decrease in the price level increases the ________ money supply which ________ interest rates and increases the equilibrium level of aggregate output, everything else held constant.

A) real; lowers

B) real; raises

C) nominal; lowers

D) nominal; raises

 

7) The aggregate demand curve has the usual downward slope, since a ________ price level ________ the real money supply, raises interest rates, and lowers the equilibrium level of aggregate output, everything else held constant.

A) lower; reduces

B) lower; increases

C) higher; reduces

D) higher; increases

 

8) The aggregate demand curve has the usual downward slope, since a higher price level reduces the real money supply, ________ interest rates, and ________ the equilibrium level of aggregate output, everything else held constant.

A) raises; lowers

B) raises; raises

C) lowers; lowers

D) lowers; raises

 

9) Everything else held constant, an increase in government spending will cause ________.

A) aggregate demand to increase

B) aggregate demand to decrease

C) the quantity of aggregate demand to increase

D) the quantity of aggregate demand to decrease

 

10) Everything else held constant, expansionary monetary policies will cause ________.

A) the quantity of aggregate demand to increase

B) the quantity of aggregate demand to decrease

C) aggregate demand to decrease

D) aggregate demand to increase

11) Everything else held constant, contractionary monetary policies will cause ________.

A) the quantity of aggregate demand to increase.

B) the quantity of aggregate demand to decrease.

C) aggregate demand to increase.

D) aggregate demand to decrease.

 

12) Everything else held constant, a purchase of government securities by the Fed will cause ________.

A) aggregate demand to increase

B) aggregate demand to decrease

C) the quantity of aggregate demand to increase

D) the quantity of aggregate demand to decrease

Mar 14 2020 View more View Less

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