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Economics
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21 Oct 2020

According to the Aggregate Demand model, national output or real GDP ______ as the general price level ______.

    1. Increases; increases

    2. Increases; decreases

    3. Decreases; increases

    4. Decreases; decreases

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Macroeconomics
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Aggregate Demand
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Kristelle Balando
Kristelle BalandoLv10
21 Oct 2020

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Related questions

When national income in other nations increases:

A. Aggregate demand increases

B. Aggregate demand decreases

C. The quantity of real domestic output demanded decreases

D. The quantity of real domestic output demanded increases

When national income in other nations increases:

1. the quantity of output demanded increases.

2. aggregate demand increases.

3. aggregate demand decreases.

4. the quantity of output demanded decreases.

Part 1. Keynesian theory argues that

a. decreases in the money supply lead to increases in the interest rate which increases investment which increases the level of real GDP.

b. increases in the money supply lead to decreases in the interest rate which increases investment which increases the level of real GDP.

c. increases in the money supply lead to decreases in the interest rate which decreases investment which decreases the level of real GDP.

d. increases in the money supply cause consumers to spend more which reduces the unemployment rate and therefore increases real GDP.

Part II Both Keynesians and monetarists agree that monetary policy works by shifting aggregate supply.
a. true
b. false

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