The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuations in economic activity around its long-run trend. The vertical axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following? The amount of a particular representative good produced in the economy The price of a particular representative good produced in the economy An economy's price level Which of the following are reasons that the aggregate demand curve slopes downward? Check all that apply. As the price level rises, households' real wealth decreases. As the price level rises, imports become relatively more expensive than domestically produced goods. As the price level rises, imports become relatively cheaper than domestically produced goods.

The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuations in economic activity around its long-run trend. The vertical axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following? The amount of a particular representative good produced in the economy The price of a particular representative good produced in the economy An economy's price level Which of the following are reasons that the aggregate demand curve slopes downward? Check all that apply. As the price level rises, households' real wealth decreases. As the price level rises, imports become relatively more expensive than domestically produced goods. As the price level rises, imports become relatively cheaper than domestically produced goods.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 5PA

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