The AD Curve ______ Because, Holding All Else Constant, an Increase

question 10

Multiple Choice

The AD curve ______ because, holding all else constant, an increase in ______ causes C, I^P and NX to fall.

• A) slopes downward; real GDP
• B) slopes downward; the inflation rate
• C) slopes upward; real GDP
• D) is horizontal; the inflation rate

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