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Economics
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The aggregate demand curve illustrates the relationship between

a. the price level and the potential demand for real GDP.

b. the price level and the potential quantity demanded of real GDP.

c. the price level and the number of goods supplied by firms.

d. the price level and the quantity of goods demanded by households, firms, government, and foreigners.

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Romarie Khazandra Marijuan
Romarie Khazandra MarijuanLv10
28 Oct 2020
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Related questions

Which of the following is correct?

a)the intersection of the aggregate demand and aggregate supply curves determines the equilibrium price and quantity of a single good.

b)The aggregate demand curve indicates a positive relationship between the price level and GDP.

c)The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price and quantity.

d)The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price level and the equilibrium level of real GDP.

e)Other things equal, a downward shift of the aggregate demand curve implies that the economy enters an expansionary phase.

 

An increase in interest rates affects aggregate demand by

A. shifting the aggregate supply curve to the​ left, decreasing real GDP and increasing the price level.

B. shifting the aggregate supply curve to the​ right, increasing real GDP and lowering the price level.

C. shifting the aggregate demand curve to the​ right, increasing real GDP and lowering the price level.

D. shifting the aggregate demand curve to the​ left, reducing real GDP and lowering the price level.

 

An increase in interest rates affects aggregate demand by:
 
A. Shifting the aggregate demand curve to the left, reducing real GDP and lowering the price level. 
B. Shifting the aggregate demand curve to the right, increasing real GDP and lowering the price level. 
C. Shifting the aggregate supply curve to the left, decreasing real GDP and increasing the price level. 
D. Shifting the aggregate supply curve to the right, increasing real GDP and lowering the price level. 

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