The Aggregate Demand Curve

question 79

Multiple Choice

The aggregate demand curve

• A) is vertical at the full-employment level of output.
• B) is horizontal at the full-employment level of output.
• C) is downward sloping.
• D) is upward sloping.

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Definitions:

IRA

Individual Retirement Account, a tax-advantaged investing tool that individuals use to earmark funds for retirement savings.

After taxes

Refers to the net income after all tax expenses have been deducted.

Compounded Monthly

A method of calculating interest whereby the accumulated interest is added back to the principal sum, and future interest is calculated on the new total each month.

Student Loans

Borrowed money that is used to pay for higher education expenses, which must be repaid with interest.