A decrease in the price level
A) shifts the AD curve to the right.
B) shifts the AD curve to the left.
C) causes an upward movement along the existing AD curve.
D) causes a downward movement along the existing AD curve.
E) none of the above
Answer: D) causes a downward movement along the existing AD curve.
Economics
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The average number of times in a year each dollar is used to buy goods and service is called
A) rate of circulation speed. B) circulation rate. C) velocity of circulation. D) nominal GDP. E) inflation.
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Approximately, the real interest rate ________ the inflation rate ________ the nominal interest rate
A) plus; equals B) equals; plus C) equals; minus D) minus; equals
Economics