QUEST 10 points Save Answer Which of the following is NOT a reason why the aggre

Question

QUEST 10 points Save Answer Which of the following is NOT a reason why the aggregate demand curve slopes wealth effect income effect interest rate effect O foreign price effect QUESTI 10 points Save Answer Which of the following would cause AD to shift to the right? A dramatic drop in the stock market A natural disaster OA new nationwide construction project A recession QUESTI 10 points Save Answer What is the shape of the long- run aggregate supply curve? O horizontal O downward-sloping QUESTI 10 points Save Answer What is true at the equilibrium the economy is at full there is 0% inflation price level? O aggregate output supplied equals aggregate output GDP is maximized

Explanation / Answer

a) "Foreign price effect" is not a reason why the demand curve slopes downward or upward.

b) "C", A new infrastructure project will increase the government expenditure and shift the AD curve to the right.

c) "B"

The LRAS curve is always vertical.

d) "C"

At the equilibrium, the aggregate demand is equal to the aggregate supply in the market.

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