Question
Please answer to both of the questions 1/ In the model of aggregate demand (AD) and aggregate supply (AS), the AD curve slopes downward because
Please answer to both of the questions
1/ In the model of aggregate demand (AD) and aggregate supply (AS), the AD curve slopes downward because
a/ Because consumption, investment, government purchases, and net exports
b/ Because the law of demand
c/ Because of sticky prices, sticky wages, and misconceptions
d/ Because of the wealth effect, the interest rate effect, and the exchange rate effect
2/ Aggregate demand would shift right if either
a/ the price level decrease or the exchange rate appreciated
b/ Government expenditures increased or interest rates declined
c/ Invesment tax credits expire, or the money supply increased
d/ technology improved or wages decreased
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