Assume Interest Rates in the Economy Have Fallen

question 244

Multiple Choice

Assume interest rates in the economy have fallen.How will this affect aggregate demand and equilibrium in the short run?

• A)Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
• B)Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
• C)Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
• D)Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
• E)Aggregate demand will rise; the equilibrium price level will rise, and potential GDP will fall.

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An individual who is effective at organizing resources and processes to achieve specific goals with minimum waste.

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Resources or capital contributed by partners to a partnership for the purpose of its business.

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