This topic contains a solution. Click here to go to the answer

Author Question: Which of these statements correctly explains the shape of the aggregate demand curve? a. As prices ... (Read 53 times)

sabina

  • Hero Member
  • *****
  • Posts: 563
Which of these statements correctly explains the shape of the aggregate demand curve?
 a. As prices fall, nominal income rises and so does the demand for real goods and services.
 b. Rising prices reduce people's wealth and thereby decrease spending.
 c. With falling prices, government decides to spend less to increase the price level.
 d. Businesses increase investment spending in response to higher interest rates caused by inflation.
 e. As prices fall, domestically produced goods become more expensive relative to foreign goods, resulting in an increase in production.

Question 2

An increase in marginal cost that remains within the gap of the marginal revenue curve of a kinked demand oligopolist will:
 a. keep price and output the same.
  b. raise price and decrease output.
  c. lower price and increase output.
  d. raise price and raise output.
  e. lower price and lower output.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

fraziera112

  • Sr. Member
  • ****
  • Posts: 356
Answer to Question 1

b

Answer to Question 2

a





 

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

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

Did you know?

There are 20 feet of blood vessels in each square inch of human skin.

For a complete list of videos, visit our video library