The Aggregate Demand Curve Is Downward Sloping Because a Higher

question 13

Multiple Choice

The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to ________ real interest rates,thereby ________ the level of equilibrium aggregate output. ,everything else held constant.

• A)raise;lowering
• B)raise;raising
• C)reduce;lowering
• D)reduce;raising

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