Explain how the aggregate demand curve is derived
What will be an ideal response?
Let the price level decrease resulting in an increase in the real money supply and a decrease in the interest rate. The lower interest rate increases consumption and investment spending. Thus, there is an inverse relationship between the price level and real income representing the aggregate demand curve.
Economics
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Which of the following is NOT a characteristic of a private good?
a. rivalry in consumption b. benefits of consumption are nonexcludable c. consumption of the good precludes consumption by another individual d. the benefits to a consumer of consuming the good are exclusive to that individual
Economics
A union never wants to accept a negative marginal wage.
Answer the following statement true (T) or false (F)
Economics