One reason that the aggregate demand curve slopes downward is that when prices

One reason that the aggregate demand curve slopes

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42.One reason that the aggregate demand curve slopes downward is that when prices rise, say in the US, the relative price of imports fall and thus, US citizens substitute away from domestically produced goods toward imported goods and thus, GDP in the US will fall (all else constant).A) TrueB) FalseTable for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):True43.Suppose the value of the US dollar changes from $1 = 1.2 euros to $1 = 1.30 euros. This being the case, imports from the US to Europe, have become more expensive to European citizens, all else constant.
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Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):True44.One reason the aggregate demand curve slopes downward is due to the fact that if the price level falls, real money balances rise, all else constant, interest rates will fall causing an increase in consumption and investment.Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):True45.Assuming that natural gas for firm X is an important input to the production process, an increase in the availability of natural gas that lowers the price of natural gas, will result in a leftward shift of firm X's supply curve.Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):False
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