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D Question 6 3 pts Aggregate demand curves slope downwards due to 3 effects. Match correctly the right with the left side: The wealth effect
D Question 6 3 pts Aggregate demand curves slope downwards due to 3 effects. Match correctly the right with the left side: The wealth effect [ Choose ] As the price level falls, U.S. become more attractive to foreigners and domestic residents, increasing net export spending As prices for outputs rise, it costs more to make the same purchases, driving up the demand for money, raising interest rates The foreign price effect As the price level falls, people buy more of the cheaper goods and less of other goods As the price level falls, the buying power of people's savings increases and induces them to spend more The interest rate effect [ Choose ]\fD Question 4 6 pts Based on AS x AD model, match correctly the right with the left side: an increase in government spending [ Choose ] a better technology that improves productivity [ Choose ] a decrease in consumer's confidence in the [ Choose ] economy an increase in labor costs [ Choose ] will shift AS curve to the right, increasing real GDP and decreasing price level will shift the AD to the right, increasing price level and real GDP an increase in oil prices will shift AD to the right, decreasing price level and increasing real GDP will shift AS to the right, increasing price level and increasing real GDP will shift the AS curve to the left, increasing price level and decreasing real GDP a weaker dollar will shift AD curve to the right, increasing price level and real GDP will shift the AD curve to the left, decreasing real GDP and price level
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