The AD Curve ________.
A) indicates the level of aggregate output corresponding to different goods-market-clearing levels of the inflation rate
B) is downward sloping,because with higher inflation comes lower interest rates and lower spending,so equilibrium aggregate output declines
C) explains how inflation affects output in the short run
D) all of the above
E) none of the above
Correct Answer:
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Q34: The MP Curve _.
A)demonstrates how central banks
Q35: Q36: The AD Curve _. Q37: Factors that shift the AD Curve include Q38: Throughout 2008,inflation and the real interest rate Q40: As the financial crisis became more severe Q41: The IS curve is Y = 20 Q42: A change in inflation leads to shifts Q43: If government cuts taxes _. Q44: When the inflation rate falls,what happens,and why,to
A)demonstrates how central banks
A)after tax income
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