Because Decreases in Inflation Increase Planned Spending and Short-Run Equilibrium

question 72

Multiple Choice

Because decreases in inflation increase planned spending and short-run equilibrium output:

• A)the short-run aggregate supply line is downward sloping.
• B)the aggregate demand curve is horizontal.
• C)the aggregate demand curve is downward sloping.
• D)the aggregate demand curve is upward sloping.

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Definitions:

Decreases

Decreases refer to a reduction in size, quantity, or intensity of something.

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Sexual activities that increase the likelihood of negative outcomes such as sexually transmitted diseases or unintended pregnancy.

Pregnancy

The period during which a fetus develops inside a woman's uterus, typically lasting around 40 weeks from the last menstrual period.

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Infections that are passed from one person to another through sexual contact.