2020 -- Quiz 6 - Name: _ ECO 2020 (902) 11656 Jinghua Huang...

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Name: __________________________________________ Date: _________________ ECO 2020 (902) 11656 QUIZ 6 Wayne State University Instructor: Jinghua Huang Fall 2011 Multiple Choice: Identify the letter of the choice that best completes the statement or answers the question. 1. The intersection of the inflation adjustment line and the aggregate demand curve is used to predict A) real GDP and the real rate of interest. B) where real and potential GDP are equal. C) real GDP and inflation. D) where real GDP equals nominal GDP. E) where potential and nominal GDP are equal. 2. In order for the aggregate demand ( AD ) curve to be downward-sloping, A) there has to be an inverse relationship between the real interest rate and real GDP and a positive relationship between inflation and the real interest rate. B) there has to be a positive relationship between the real interest rate and real GDP and a negative relationship between inflation and the real interest rate. C) there has to be an inverse relationship between the real interest rate and real GDP and an inverse relationship between inflation and the real interest rate. D) there has to be a positive relationship between the real interest rate and real GDP and a positive relationship between inflation and the real interest rate. E)
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This note was uploaded on 03/11/2012 for the course ECO 2020 taught by Professor Huang during the Winter '12 term at Wayne State University.

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2020 -- Quiz 6 - Name: _ ECO 2020 (902) 11656 Jinghua Huang...

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