In Deriving the Aggregate Demand Curve a ________ Price Level

question 51

Multiple Choice

In deriving the aggregate demand curve a ________ price level ________ the money supply in real terms,raises interest rates,and ________ the equilibrium level of aggregate output.

• A)higher; reduces; raises
• B)higher; reduces; lowers
• C)lower; increases; raises
• D)lower; increases; lowers

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Definitions:

Judicial Review

The process by which a court examines the actions of public sector bodies to ensure they are lawful and constitutional.

Appeal

The process of challenging a decision in a higher court or authority in hopes of overturning or modifying the original decision.

Successful Negotiation

The process of reaching an agreement between two or more parties through effective communication and compromise.

Mandamus

A judicial writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty.