Which of the Following Is NOT True of an Aggregate

question 36

Multiple Choice

Which of the following is NOT true of an aggregate demand and aggregate supply graph that is drawn to represent the Keynesian perspective?

• A) The aggregate demand curve has a negative slope.
• B) If output is below the natural rate, changes in demand affect both output and price.
• C) Output is determined primarily by shifts in the aggregate demand curve.
• D) If output is below the natural rate, the price level remains steady when the aggregate demand curve shifts.

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Definitions:

Three Decimal Places

Refers to a numerical value rounded or fixed to have exactly three digits to the right of the decimal point.

\(70e^{-0.5x}\)

An exponential function representing growth or decay, where 70 is the initial quantity and \(-0.5x\) adjusts the rate of increase or decrease.

Real Number

A figure that indicates a quantity on an unbroken scale, comprising both rational and irrational numbers.

Horizontal Asymptote

A horizontal line that a graph approaches as the input or output values become infinitely large in absolute value.