Which of the following is a FALSE statement? The only variable not held constant along the aggregate demand curve is the price level The only variable that changes along an aggregate demand curve is the price level- all other influences are held constant The inter temporal and internatiohal substitution effect, and the wealth effect contribute to a positively sloped aggregate supply curve The inter temporal and international substitution effects, and the wealth effect contribute to a negatively sloped aggregate demand curve Oit the price level rises, then the wealth effect leads to a decrease in real wealth, a decrease in current consumption expenditure and an increase in savings
Which of the following is a FALSE statement? The only variable not held constant along the aggregate demand curve is the price level The only variable that changes along an aggregate demand curve is the price level- all other influences are held constant The inter temporal and internatiohal substitution effect, and the wealth effect contribute to a positively sloped aggregate supply curve The inter temporal and international substitution effects, and the wealth effect contribute to a negatively sloped aggregate demand curve Oit the price level rises, then the wealth effect leads to a decrease in real wealth, a decrease in current consumption expenditure and an increase in savings
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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Transcribed Image Text:Which of the following is a FALSE statement?
O The only variable not held constant along the aggregate demand curve is the price level
The only variable that changes along an aggregate demand curve is the price level- all other
influences are held constant
The inter temporal and internatiohal substitution effect, and the wealth effect contribute to a
positively sloped aggregate supply curve
O The inter-temporal and international substitution effects, and the wealth effect contribute to a
negatively sloped aggregate demand curve
Oit the price level rises, then the wealth effect leads to a decrease in real wealth, a decrease in
current consumption expenditure, and an increase in savings
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