The AD Curve ________

question 17

Multiple Choice

The AD Curve ________.

• A)indicates the level of aggregate output corresponding to different goods-market-clearing levels of the inflation rate
• B)is downward sloping,because with higher inflation comes lower interest rates and lower spending,so equilibrium aggregate output declines
• C)explains how inflation affects output in the short run
• D)all of the above
• E)none of the above

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