The aggregate demand curve illustrates that, as the price level rises
A) the quantity of real GDP demanded increases.
B) the quantity of real GDP demanded decreases.
C) the AD curve shifts rightward.
D) the AD curve shifts leftward.
B
You might also like to view...
How are the fundamental economic decisions determined in Canada?
A) These decisions are made by the country's elders who have had much experience in answering these questions. B) The United Nations decides because Canada is a developing economy. C) Individuals, firms, and the government interact in a market to make these economic decisions. D) The government decides because Canada is a centrally planned economy.
Use the standard IS-LM-FE framework and assume the country begins at a triple intersection. Show using the graph and explain in words the effect that an increase in the country's money supply will have on domestic interest rates, output levels, and the official settlements balance (before we consider the implications of pressure on the country's exchange rate).
What will be an ideal response?