Answer to Question #109458 in Macroeconomics for Sthabile

Question

A.Which of the following best describe the relationship illustrated by the aggregate demand (AD)1.The inverse relationship between price and quality demanded for any product 2.The negative relationship between the price level and levels of total production3.It shows non relationship between the price level and real GDP demanded B.Aggregate spending will increase if...1.real wealth falls 2.interest rate falls 3.consumption falls 4.investment falls C.If the AS curve shifts to the left as productivity decreases, it will result in a combination of...1.lower output,higher unemployment and higher inflation 2.lower output, lower unemployment, and lower inflation 3.higher output,lower unemployment,and lower inflation 4.higher output, higher unemployment, and higher inflation.

Answer 1

4) Aggregate demand curve is the inverse relationship between the price level and real output demanded. 

2) Aggregate spending incrase if interest rate fall