aggregate demand Pelation, a Peauction ik price level causes output to Increase because of its effect on: A) firms' markup over labour costs. B) the nominal wage. C) the interest rate. D) the expected price level. E) government spending.
aggregate demand Pelation, a Peauction ik price level causes output to Increase because of its effect on: A) firms' markup over labour costs. B) the nominal wage. C) the interest rate. D) the expected price level. E) government spending.
Chapter1: Making Economics Decisions
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![5) In the aggregate demand relation, a reduction in the price level causes output to increase because of
its effect on:
A) firms' markup over labour costs.
B) the nominal wage.
C) the interest rate.
D) the expected price level.
E) government spending.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5af5dcf7-1819-49c8-b323-d3e248d5c5cc%2F0fece818-b045-4c69-9173-7c68e37c75a9%2Fdvm1jtwx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5) In the aggregate demand relation, a reduction in the price level causes output to increase because of
its effect on:
A) firms' markup over labour costs.
B) the nominal wage.
C) the interest rate.
D) the expected price level.
E) government spending.
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