The Aggregate Demand Curve Shows That, If Other Factors Are

question 32

Multiple Choice

The aggregate demand curve shows that, if other factors are held constant, the higher the price level, the

• A) larger consumption expenditure.
• B) greater the quantity of real GDP demanded.
• C) smaller the quantity of real GDP demanded.
• D) None of the above answers is correct.

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Definitions:

International Trade

The exchange of goods and services across international borders or territories.

Foreign Aid

Is financial, technical, or material assistance given by one country to another, usually for developmental purposes or humanitarian aid.

Loan Interest

The additional amount charged by a lender to a borrower for the use of borrowed funds, usually expressed as an annual percentage of the principal.

Dependency Theory

Views economic underdevelopment as the result of exploitative relations between rich and poor countries.