« previous next »

Author Question: The aggregate demand curve portrays the relationship between price level and real GDP. What are the ... (Read 15 times)

viki

  • Hero Member
  • *****
  • Posts: 525
on: Jun 30, 2018
The aggregate demand curve portrays the relationship between price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.

Question 2

The ratio of U.S. government spending to GDP reached its peak during:
 a. World War I.
  b. World War II.
  c. the Great Depression.
  d. the real estate crisis.
  e. the bursting of the stock market bubble.


eliasc0401

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

The three complementary explanations for the negative slope of the aggregate demand curve include are the real wealth effect, the interest rate effect, and the open economy effect. Brief examples accepted at instructor discretion.

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Drive-on ramps are dangerous to use. The wheels on the ground level must be chocked (blocked) to ... Drive-on ramps are dangerous to use. The wheels on the ground level must be chocked (blocked) to ...
The relationship between the height of the firing line and length of the spark line can be ... The relationship between the height of the firing line and length of the spark line can be ...
The level of emissions from transport in the United States is twice as high as the global average The level of emissions from transport in the United States is twice as high as the global average
The Kuznets Curve in England and Wales, 1823–1915 The Kuznets Curve in England and Wales, 1823–1915
Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ... Let f be a real function with domain R. Suppose that for each ǫ > 0, there is a continuous ...
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Video: Interview with Person who has Schizophrenia

For a complete list of videos, visit our video library