The Aggregate Demand Curve Is

question 146

Multiple Choice

The aggregate demand curve is:

• A)vertical if full employment exists.
• B)horizontal when there is considerable unemployment in the economy.
• C)downward sloping because of the interest-rate, real balances, and foreign trade effects.
• D)downward sloping because production costs decrease as real output increases.

---

Definitions:

Deposits In Reserve

Money that commercial banks are required to keep in the form of vault cash or deposits with the central bank, as a regulation to ensure banks can meet depositor demands.

Money Supply

The total amount of currency and other liquid instruments in a country's economy as of a particular time.

Leakage Current

The undesired flow of electrical current through an insulating medium or unintended path, often leading to inefficiencies or safety concerns.

PLC Input

An electrical or signal input to a Programmable Logic Controller from sensors or devices, used to influence PLC programs.