The U.S. aggregate demand curve is downward sloping because
a. an increase in the U.S. price level causes an increase in U.S. spending on consumption goods
b. at lower U.S. price levels, real wealth decreases, causing a decrease in the quantities of U.S. goods and services demanded
c. at lower U.S. price levels, interest rates decrease, causing a decrease in the quantities of U.S. goods and services demanded
d. at lower price levels in the U.S., U.S. exports become more attractive abroad, the demand for them increases, causing an increase in the quantities of U.S. goods andservices demanded
e. increases in the U.S. price level do not affect American's real wealth
D
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In 1995, the General Agreement on Tariffs and Trade (GATT), which was established in 1948, was replaced by the World Trade Organization (WTO). Why did members of the GATT push for the establishment of the WTO?
A) The GATT agreement only covered trade in goods. The WTO was created to cover trade in goods, services, and intellectual property. B) By 1995 tariffs had been eliminated. The WTO was created to reduce non-tariff trade barriers. C) The charter of the GATT had run out and a new organization was needed to promote international trade. D) The creation of the European Union (EU) made the GATT obsolete. The WTO was formed to regulate trade between the EU and other nations.
If the price elasticity of supply is elastic, which of the following could be a possible value of the elasticity?
A. 3 B. 1 C. 0.3 D. 0