The Aggregate Demand Curve Is Negatively Sloped in Part Because

question 4

Multiple Choice

The aggregate demand curve is negatively sloped in part because of the impact of:

• A) the wealth effect on consumption.
• B) the interest rate effect on government spending.
• C) the stickiness of nominal wages and salaries.
• D) the flexibility of nominal wages and salaries.

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Definitions:

Conscious

In Freud’s topographic model, the part of personality that contains the thoughts we are currently aware of.

Preconscious

Pertaining to thoughts and feelings not immediately in consciousness but can be readily brought to mind.

Time Magazine

An American weekly news magazine known for its influential coverage of world events, politics, and culture.

Albert Einstein

A theoretical physicist known for developing the theory of relativity, one of the two pillars of modern physics, alongside quantum mechanics.