Each of the following factors contribute to the slope of the dynamic aggregate demand curve, except the:
A)Strength of the effect of inflation on real balances
B)Current level of technology
C)Extent to which monetary policymakers react to a change in current inflation
D)Size of the response of aggregate demand to changes in the interest rate

Question

Quizplus · Accepted Answer

The current level of technology does not directly contribute to the slope of the dynamic aggregate demand curve. The other factors listed (strength of the effect of inflation on real balances, extent to which monetary policymakers react to a change in current inflation, size of the response of aggregate demand to changes in the interest rate) all have a direct impact on the slope of the dynamic aggregate demand curve.

Each of the Following Factors Contribute to the Slope of the Dynamic