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explain these questions One reason the AD curve slopes downward is the interest rate effect, which describes how higher prices can raise the interest rate,

explain these questions

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One reason the AD curve slopes downward is the "interest rate effect," which describes how higher prices can raise the interest rate, lowering O net exports. 0, government spending. 0, government spending and unplanned investment. investment and consumption spending. Suppose the price level changes from 100 to 103 and the aggregate level of GDP supplied increases from $20T to $20.5T. This correlation reflects the relationship between the quantity of real GDP firms are willing to produce and the price level. negative; long-run positive; short-run negative; short-run positive; long-runImagine that OPEC holds a meeting and decides (unexpectedly) to increase the price of oil by 25 percent. In the short-run, the equilibrium price level and the unemployment rate IIf'j rises; rises If\" rises; falls If} falls;fa|ls If} falls; rises The "misery index" increases most when O inflation rises and GDP rises. O inflation rises and GDP falls. inflation falls and GDP rises. inflation falls and GDP falls

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