Because of Intertemporal Substitution, a Negative Shock to Aggregate Demand

question 10

Multiple Choice

Because of intertemporal substitution, a negative shock to aggregate demand results in

• A) a shift of the Solow growth curve to the right.
• B) a shift of the Solow growth curve to the left.
• C) an upward movement along the Solow growth curve.
• D) a downward movement along the Solow growth curve.

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