Price level (GDP price Index, 2009 = 100) 1 50 1 40 130 120 110 100 90 AD 15 16 17 18 Real GDP (trillons of 2009 dollars) The figure above shows the aggregate demand curve. The aggregate demand curve in the figure above shifts rightward if O taxes are raised, O potential GDP increases. O the money wage rate falls. The figure above shows the aggregate demand curve. The aggregate demand curve in the figure above shifts rightward if O taxes are raised, O potential GDP increases. O the money wage rate falls. O the Federal Reserve lowers the interest rate. O government expenditure decreases.

Price level (GDP price Index, 2009 = 100) 1 50 1 40 130 120 110 100 90 AD 15 16 17 18 Real GDP (trillons of 2009 dollars) The figure above shows the aggregate demand curve. The aggregate demand curve in the figure above shifts rightward if O taxes are raised, O potential GDP increases. O the money wage rate falls. The figure above shows the aggregate demand curve. The aggregate demand curve in the figure above shifts rightward if O taxes are raised, O potential GDP increases. O the money wage rate falls. O the Federal Reserve lowers the interest rate. O government expenditure decreases.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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