Question
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.
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