One explanation for the slope of the aggregate demand curve is that:
a. nominal income falls and so does the demand for goods and services as prices rise
b. falling prices make people feel poorer and reduce spending.
c. the government spends less to drive the price level back to normal as prices rise.
d. businesses increase spending when inflation is high and rising.
e. domestic goods become more expensive relative to foreign goods when prices rise, reducing exports.
e
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Perfect competition is a market structure in which there is:
a. a contest among firms to provide good service after the sale. b. competition in product quality. c. rivalry in product design. d. none of these.
Since there are smaller fluctuations in the equilibrium prices of final goods than in the prices of intermediate goods, the producer price index is more volatile than the consumer price index
a. True b. False Indicate whether the statement is true or false