If Money Demand Relative to the Level of Real Output

question 121

Multiple Choice

If money demand relative to the level of real output is constant then,the slope of the AD curve is

• A)steeper the steeper the slope of the LM curve.
• B)flatter the flatter the slope of the LM curve.
• C)steeper the flatter the slope of the LM curve.
• D)horizontal if the LM curve is vertical.

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Definitions:

Natural Resources

Raw materials or substances occurring in nature that can be used for economic gain, such as minerals, forests, and water.

Industrial Economy

An economy characterized by a significant weight of manufacturing, infrastructure, and services related to the processing and production of goods.

Low Productivity

A state where there is a lower output per unit of input, which may lead to decreased economic performance.

Education

The systematic process of facilitating learning, acquisition of knowledge, skills, values, beliefs, and habits.