This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward ... (Read 128 times)

penguins

  • Hero Member
  • *****
  • Posts: 903
on: Jun 29, 2018
Why is the aggregate demand curve downward sloping while the aggregate expenditure line is upward sloping?
 
  What will be an ideal response?

Question 2

Refer to Figure 27-10. In the graph above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could Congress and the president use to move the economy to point C?
 
  A) buy Treasury bills B) increase income taxes
  C) increase government spending D) decrease the discount rate


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

javimendoza7

  • Sr. Member
  • ****
  • Posts: 293
Reply #1 on: Jun 29, 2018
Answer to Question 1

A downward-sloping aggregate demand curve reflects the inverse relationship between the price level and the level of planned aggregate expenditure, while an upward-sloping aggregate expenditure line reflects the positive relationship between real GDP and aggregate expenditure.

Answer to Question 2

B


penguins

  • Member
  • Posts: 903
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Human photopic (cone) and scotopic (rod) spectral sensitivity curves. The peak of each curve has ... Human photopic (cone) and scotopic (rod) spectral sensitivity curves. The peak of each curve has ...
Gently squeeze the tissues along the eyebrow line between your thumb and forefinger. Begin at the ... Gently squeeze the tissues along the eyebrow line between your thumb and forefinger. Begin at the ...
Unregulated populations "J-shaped curve" Unregulated populations "J-shaped curve"
The demand for energy is met by burning coal and other fossil fuels The demand for energy is met by burning coal and other fossil fuels
A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ... A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ...
Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus). Type II curve. Mortality does not vary with age. Data for five-lined skink (Eumeces fasciatus).
Video: Inflammation Animation

For a complete list of videos, visit our video library