Pre-Test Chap 29 e18 - Pre-Test Chap 29 e18 Student 1 The...

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Pre-Test Chap 29 e18 Student: ___________________________________________________________________________ 1. The aggregate demand curve can be derived from the aggregate expenditures model as indicated by the fact that: A. A decrease in the price level shifts the aggregate expenditures schedule downward and decreases real GDP B. A decrease in the price level shifts the aggregate expenditures schedule upward and decreases real GDP C. An increase in the price level shifts the aggregate expenditures schedule upward and increases real GDP D. An increase in the price level shifts the aggregate expenditures schedule downward and decreases real GDP 2. Why did the increase in oil prices in the late 1990s and early years of the 2000s not produce substantial cost-push inflation? 3. Refer to the above diagram. When output increases from Q 1 and the price level decreases from P 1 , this change will: 4. A fall in the price of capital goods will shift the aggregate:
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