The aggregate demand curve is downward sloping because
a. an increase in the price level will cause an increase in spending on goods and services.
b. at lower price levels, real wealth decreases, causing a decrease in the quantity demanded of goods and services.
c. at lower price levels, interest rates increase, causing a decrease in the quantity demanded of goods and services.
d. at lower price levels, net exports increase, causing an increase in quantity demanded of goods and services.
D
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For a self-sufficient producer, the production possibilities frontier
a. is the same as the consumption possibilities frontier. b. is greater than the consumption possibilities frontier. c. is less than the consumption possibilities frontier. d. is always a straight line.
Like real GDP, investment fluctuates, but it fluctuates much less than real GDP
a. True b. False Indicate whether the statement is true or false