The Wealth Effect,interest-Rate Effect,and Exchange-Rate Effect Are All Explanations for

question 108

Multiple Choice

The wealth effect,interest-rate effect,and exchange-rate effect are all explanations for

• A)the slope of short-run aggregate supply.
• B)the slope of long-run aggregate supply.
• C)the slope of the aggregate-demand curve.
• D)everything that makes the aggregate-demand curve shift.

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Definitions:

Optimist

An individual who tends to be hopeful and confident about the future or the success of something.

Pessimist

A person who tends to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Avoidance/Avoidance Conflict

A psychological conflict that arises when an individual must choose between two unattractive options or outcomes.

Confrontation

The act of facing or dealing with a challenge, dispute, or opposition directly and openly.