Figure 13.1 -The Aggregate Demand Curves in Figure 13.1 Have a Positively-Sloped

question 59

Multiple Choice

Figure 13.1
-The aggregate demand curves in Figure 13.1 have a positively-sloped portion.The reason this can happen is ________.

• A)sloppy editing
• B)the monetary policy response to declining inflation causes the real interest rate to fall,which causes output to rise
• C)a sudden increase in potential output
• D)changes in expected inflation cause the real interest rate to change in the opposite direction
• E)rising inflation causes financial frictions to increase

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Definitions:

Disconnected

Lacking coherence or continuity, resulting in a fragmented or disjointed experience.

Parallelism

A grammatical and stylistic device used in writing and speech that involves making two or more phrases or sentences mirror each other in structure, sound, meaning, or meter to create symmetry.

Grammatical Structure

The arrangement of words and phrases to create well-formed sentences in a language.

Definitive Statements

Clear and unambiguous assertions that leave no room for doubt or interpretation.