If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively

Discuss the aggregate production function. How does the aggregate production function relate to the labor market and potential GDP?

What will be an ideal response?

The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to raise ________ interest rates, thereby ________ the level of equilibrium aggregate output., everything else held constant

A) real; lowering B) real; raising C) nominal; lowering D) nominal; raising