The Intertemporal Substitution Effect of the Price Level on Aggregate

question 377

Multiple Choice

The intertemporal substitution effect of the price level on aggregate demand

• A) explains why aggregate demand increases when the amount of money increases.
• B) is the same as the real wealth effect.
• C) is one reason that the aggregate demand curve has a positive slope.
• D) is one reason that the aggregate demand curve has a negative slope.

---

Definitions:

Judicial Review

The power of courts to assess whether a law is in compliance with the constitution.

Supreme Court History

The history of the Supreme Court involves the development and evolution of the highest federal court in the United States, established in 1789 under the Constitution.

Amicus Curiae

A term meaning "friend of the court" where individuals or organizations not party to a case provide information or expertise to assist the court in its decision-making process.

Certiorari

A writ issued by a superior court directing the transfer of a case from a lower court for review.