The aggregate demand curve shifts when there are changes in:
A) inflation inertia and aggregate supply shocks.
B) exogenous spending and the Fed's reaction function.
C) exogenous spending and inflation inertia.
D) potential output and exogenous spending.
Correct Answer:
Verified
Q1: The aggregate demand curve shows the relationship
Q2: Changes in aggregate spending not caused by
Q4: At a constant rate of exchange between
Q5: As inflation decreases, households become _ uncertain
Q6: The aggregate demand curve is downward sloping
Q7: As inflation increases, households become _ uncertain
Q8: All else equal, a decrease in the
Q9: Because decreases in inflation increase planned spending
Q10: All else equal, an increase in the
Q11: For a fixed target real interest rate
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