In Deriving the Aggregate Demand Curve from the Aggregate Expenditures

question 203

Multiple Choice

In deriving the aggregate demand curve from the aggregate expenditures model we note that:

• A)the wealth or real balances effect is irrelevant to both models.
• B)a change in the price level will have no impact on the aggregate expenditures schedule.
• C)an increase (decrease) in the price level shifts the aggregate expenditures schedule upward (downward).
• D)an increase (decrease) in the price level shifts the aggregate expenditures schedule downward (upward).

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Definitions:

Fragile X Syndrome

A genetic disorder characterized by intellectual disability, behavioral and learning challenges, and various physical characteristics.

Sickle Cell Anemia

A genetic blood disorder characterized by red blood cells that assume an abnormal, rigid, sickle shape.

Red Blood Cells

Cells in the blood that carry oxygen to body tissues and organs through the protein hemoglobin.

Dominant-Recessive

Describes the relationship between two alleles of a gene, where the dominant allele's traits are expressed in the phenotype over the recessive allele's traits, which are masked when paired with a dominant allele.