Which of the Following Is True Regarding the Aggregate Demand

question 161

Multiple Choice

Which of the following is true regarding the aggregate demand curve?

• A)It is vertical at the full-employment level of GDP.
• B)It is horizontal when there is considerable unemployment in the economy.
• C)It is downward-sloping because of the interest-rate,real balances,and foreign-trade effects.
• D)It is downward-sloping because production costs decrease as real output increases.
• E)It is upward-sloping because as output increases,aggregate expenditures increase.

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Definitions:

Random Walk

A theory in finance suggesting that stock market prices follow an unpredictable path, making it impossible to predict future movements based on past trends.

Input Module

A component of a modular PLC or control system that receives signals from input devices, such as sensors, and converts them into a form that the processor can use.

Output Module

A component in a control system that facilitates the transfer of digital or analog signals from the controller to actuating devices.