Author Question: The aggregate demand curves in Figure 13.1 have a positively-sloped portion. The reason this can ... (Read 119 times)

a0266361136 · **on:** Jun 30, 2018

The aggregate demand curves in Figure 13.1 have a positively-sloped portion. The reason this can happen is ________.

A) sloppy editing
B) the monetary policy response to declining inflation causes the real interest rate to fall, which causes output to rise
C) a sudden increase in potential output
D) changes in expected inflation cause the real interest rate to change in the opposite direction
E) rising inflation causes financial frictions to increase

Question 2

Which of the following is (are) likely to cause the marginal product of an input to decrease?

A) an increase in the real price of the input
B) a decrease in the quantity of the input used in production
C) technological advances
D) all of the above
E) none of the above