Because Decreases in Inflation Increase Planned Spending and Short-Run Equilibrium

question 138

Multiple Choice

Because decreases in inflation increase planned spending and short-run equilibrium output,the

• A) inflation adjustment (IA)line is downward-sloping.
• B) inflation adjustment (IA)line is upward-sloping.
• C) aggregate demand (ADI)curve is horizontal.
• D) aggregate demand (ADI)curve is downward-sloping.
• E) aggregate demand (ADI)curve is upward-sloping.

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Definitions:

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A flat, brownish spot on the skin commonly occurring in older adults due to sun exposure, also known as age spot.

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Pigmented areas on the skin, often caused by sun exposure, aging, or other factors, that can range in color from light brown to black.