Note : please answer both the question. I will give instant upvote. For the "No, markets fail often" camp,when a negative demand shock occurs, A. workers and employers accept layoffs instead of lower wages. B. falling prices will increase consumer demand for products and services. C. falling Canadian prices decrease net exports. D. lower interest rates will increase investment. Of all parts of aggregate demand, investment spending is the A. part that is not postponable. B. largest. C. least affected by interest rates and expectations. D. most volatile, unpredictable part.
Note : please answer both the question. I will give instant upvote. For the "No, markets fail often" camp,when a negative demand shock occurs, A. workers and employers accept layoffs instead of lower wages. B. falling prices will increase consumer demand for products and services. C. falling Canadian prices decrease net exports. D. lower interest rates will increase investment. Of all parts of aggregate demand, investment spending is the A. part that is not postponable. B. largest. C. least affected by interest rates and expectations. D. most volatile, unpredictable part.
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 4CQQ
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Note : please answer both the question. I will give instant upvote.
For the "No, markets fail often" camp,when a negative
A.
workers and employers accept layoffs instead of lower wages.
B.
falling
C.
falling Canadian prices decrease net exports.
D.
lower interest rates will increase investment.
Of all parts of aggregate demand, investment spending is the
A.
part that is not postponable.
B.
largest.
C.
least affected by interest rates and expectations.
D.
most volatile, unpredictable part.
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