The Aggregate Demand Curve Is Downward Sloping Because a Decrease

question 113

Multiple Choice

The aggregate demand curve is downward sloping because a decrease in the price level increases the ________ money supply which ________ interest rates and increases the equilibrium level of aggregate output,everything else held constant.

• A)real; lowers
• B)real; raises
• C)nominal; lowers
• D)nominal; raises

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