Which of the following would help explain why the aggregate demand curve slopes downward?
a. An unexpectedly low price level raises the real wage, which causes firms to hire fewer workers and produce a smaller quantity of goods and services.
b. A lower price level causes domestic interest rates to rise and the real exchange rate to appreciate, which stimulates spending on net exports.
c. A higher price level increases real wealth, which stimulates spending on consumption.
d. A lower price level reduces the interest rate, which encourages greater spending on investment goods.
d
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Which of the following about economic growth is true?
a. The fastest growing economies in the world are mostly less developed countries. b. The fastest growing economies in the world (those with annual real growth rates of 3.5 percent or more) are mostly high-income industrial countries. c. The slowest growing countries in the world, many of which are experiencing declines in per capita GDP, are less developed countries. d. Both a and c are true.
Homothetic goods are neither necessities nor luxuries, but rather lie on the borderline between them. ?
Answer the following statement true (T) or false (F)