Economics

The downward slope of the aggregate demand curve shows that A) a high

The downward slope of the aggregate demand curve shows that A) a higher price level will cause planned purchase rates for final goods and services to be higher. B) an increase in aggregate demand reduces the long-run aggregate supply. C) a lower price level will cause planned purchase rates for final goods and services to […]

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Date: September 2nd, 2020

The average propensity to consume (APC) equals A) the change in consu

The average propensity to consume (APC) equals A) the change in consumption expenditures divided by the change in real disposable income. B) real disposable income divided by consumption expenditures. C) the change in real disposable income divided by the change in consumption expenditures. D) consumption expenditures divided by real disposable income.   ANSWER D

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Date: September 2nd, 2020

The open economy effect and interest rate effect are two of the reason

The open economy effect and interest rate effect are two of the reasons why A) higher price levels increase long-run aggregate supply. B) growth of the labor force does not contribute to economic growth in wealthy countries. C) capital formation does not contribute to economic growth in poor countries. D) the aggregate demand curve slopes […]

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Date: September 2nd, 2020