Explain why the following statements are false. a. The aggregate-demand curve slopes downward because it is the

Question:

Explain why the following statements are false.

a. “The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods.”

b. “The long-run aggregate-supply curve is vertical because economic forces do not affect long-run aggregate supply.”

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Macroeconomics

ISBN: 9780357133491

9th Edition

Authors: N. Gregory Mankiw

See More Books

Question Posted: Sep 28, 2024 08:01 AM

See More Questions

a. Which of the followingexplain why the aggregate demand curve slopes downward? The interest-rate effect, the real-balances effect, and the foreign-trade effect The investment effect, the...
maw Review the Romer model as summarized in the table 6.1 of the book (or in our lecture notes). Now suppose the parameters of the model take the following values: o = 100, = 0.06, z = 1/3000, and I...
Solve each system. x + 4y = - 3x + 2y = 17 -9
Use an amortization table that determines the monthly mortgage payment based on a specific interest rate and principal with a 15-year maturity, and then for a 30-year maturity. Is the monthly payment...
An object is placed in front of convex surface of a glass piano-convex lens of thickness d = 9.0 cm. The image of that object is formed on the plane surface of the lens serving as a screen. Find: (a)...
Explain why the following statements are false. a. The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods. b. The long-run...
Lydia Trottier has prepared baked goods for sale since 1998. She started a baking business in her home and has been operating in a rented building with a storefront since 2003. Trottier incorporated...
Regardless of whether a particular course of action is ethical , at bare minimum, business decision should be
In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Franklin Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping...
What is the theory of liquidity preference? How does it help explain the downward slope of the aggregatedemand curve?
Accounting is an information system that measures and reports the value created when a company transforms resources. Does an accounting system create value? If so, how? If not, why do companies have...
What are the challenges associated with tunneling in urban areas?
What are the main differences between rigid and flexible pavements?
What is the purpose of a retaining wall, and how is it designed?
How do you determine the load-bearing capacity of a soil?
what is Edward Lemieux effect / Anomeric effect ?
Eight point charges, each of magnitude q, are located on the corners of a cube of edge s, as shown in Figure P23.69. (a) Determine the x, y, and z components of the resultant force exerted by the...
A fast-food restaurant averages 150 customers per hour. The average processing time per customer is 90 seconds. a. Determine how many cash registers the restaurant should have if it wishes to...
Does a firms price equal marginal cost in the short run, in the long run, or both? Explain.
Does a firms price equal marginal cost in the short run, in the long run, or both? Explain.
Does a firms price equal the minimum of average total cost in the short run, in the long run, or both? Explain.
How much is a $ 1 , 0 0 0 deduction worth to a married couple with taxable income of $ 1 , 1 0 0 , 0 0 0 who live in California where they also pay a 1 3 . 3 % state income tax?
MIG Tools can either lease or buy some equipment. The lease payments would be $12,800 a year and the purchase price is $35,900. The equipment has a 3-year life after which it is expected to have a...
Can someone help me solve this question and show all work 4. A stock sells for $50 today. Next year there is a 10% chance the stock will sell for $25 and a 90% chance the stock will sell for $75. The...

Explain why the following statements are false. a. The aggregate-demand curve slopes downward because it is the

Question:

Step by Step Answer:

Principles Of Macroeconomics

Students also viewed these Business questions