The Open Economy Effect and Interest Rate Effect Are Two

question 29

Multiple Choice

The open economy effect and interest rate effect are two of the reasons why

• A) higher price levels increase long-run aggregate supply.
• B) the aggregate demand curve slopes downward.
• C) capital formation does not contribute to economic growth in poor countries.
• D) growth of the labor force does not contribute to economic growth in wealthy countries.

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Definitions:

Pyruvate

An important organic acid in biochemistry, serving as an end product of glycolysis and a substrate for the citric acid cycle.

Pyruvate Ion

The ionized form of pyruvic acid, an important intermediate in several metabolic pathways, including glycolysis.

Lactate Ion

The lactate ion is a negatively charged molecule (anion) produced by the loss of a hydrogen atom from lactic acid, commonly formed during anaerobic respiration.

Lactic Acid

A natural organic acid present in milk and produced in the muscles during intense activity.