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Hello i really need help with these - please explain, I will appreciate it! 1. Aggregate demand is down sloping for all of the reasons

Hello i really need help with these - please explain, I will appreciate it!

1. Aggregate demand is down sloping for all of the reasonsexcept

the wealth effect.

the exchange rate effect.

the interest rate effect.

that consumers purchase more of a good as the price rises.

that consumers purchase more of a good as the price decreases.

2. Which of the following statements about the production possibilities curve above are correct?

I. The opportunity cost of moving from point B to C is 50 units of capital goods.

II. The opportunity cost of moving from point C to B is 100 units of consumer goods.

III. The opportunity cost of moving from point A to C is 75 units of consumer goods.

image text in transcribedimage text in transcribedimage text in transcribed
\fPL LRAS, AS1 LRAS AS1 AS2 Consumer Goods AD2 AD1 AD1 Capital Goods RGDP = Y RGDP = Y A B C PL LRAS AS2 AS1 AD1 Consumer Goods D RGDP = Y Capital Goods E

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