Another Reason for the Downward Slope of the Aggregate Demand

question 69

Multiple Choice

Another reason for the downward slope of the aggregate demand curve is the effect of inflation on the:

• A)real value of net assets
• B)real value of properties held by investors
• C)nominal value of net assets
• D)real value of equilibrium output

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Definitions:

Mechanical Energy

The sum of potential and kinetic energy in a physical system, which enables it to do work.

Chemical Energy

A form of potential energy stored in chemical bonds between atoms and molecules.

Just Noticeable Difference (JND)

The smallest difference in stimulation that a person can detect 50% of the time; a measure of sensory sensitivity.

Just Noticeable Difference

The smallest difference in stimulus intensity that a specific sense can detect.