1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Zanzabum
3 years ago
5

The wealth effect, interest-rate effect, and exchange-rate effect all help explain why the aggregate demand curve is downward sl

oping. Phyllis, a fellow student in your AP Macro class, suggests that the substitution effect that you learned about in Unit 1 also explains why aggregate demand curve is downward sloping. She reasons that since it explains why a market demand curve is downward sloping, it must also be valid for aggregate demand. Explain why Phyllis is wrong.
Advanced Placement (AP)
1 answer:
MA_775_DIABLO [31]3 years ago
7 0

Explanation:

The aggregate demand curve is downward sloping. It implies price levels are falling and the quantity of output will increase as well as the domestic income. The theories that can explain why the aggregate demand curve is downward sloping: the Pigou's wealth effect, the Keynes's interest-rate effect, and the and Mundell-Fleming's exchange-rate effect.

You might be interested in
CONNECTIONS BETWEEN PLACES<br> 14. What is diffusion?
LenaWriter [7]

Answer:

the process of spread of a feature or a trend from one place to another over time

Explanation:

diffusion is when innovations spread to new places while staying strong in their original locations.

3 0
3 years ago
Is commerce limited to distribution (discuss)​
Andrew [12]

Answer:

yeah commerce is limited to distribution .

6 0
3 years ago
Has the tragedy of the commons always been an issue? explain why?
Gala2k [10]

Answer: it depends

Explanation:

5 0
2 years ago
What would be the best approach to help Marcus quit smoking if he is in the precontemplation stage?
drek231 [11]
The answer is D because it still isn't a conscious thought
4 0
3 years ago
Compare and contrast what impact does genetics have on happiness?
ollegr [7]
According to science, yes – happiness, indeed, has a heritable component. It’s a finding that is surprising and not surprising at the same time. It's surprising because of our culturally-sanctioned convictions that with our choices, thoughts, and behavior, we have the final say on how well we function in our lives, not our circumstances. But it's also not surprising because if our genes play a part in shaping who we are in the world, they will also have a say in how we pursue and find happiness. People might inherit genes that put them in advantageous or less favorable positions. Depression is genetic...
3 0
3 years ago
Other questions:
  • In a score sheet, what does a double bar line represent? the end? the beginning? the pitch?
    7·2 answers
  • Describe what the Democrats and Republicans, respectively, must do to put together a successful national coalition to achieve po
    8·1 answer
  • Raise the Driving Age to Eighteen! After reading Mr. J. Brown's letter, dated August 15, I feel compelled to write and let your
    15·2 answers
  • So u now now the g spot and the d what do they make toghether
    13·1 answer
  • What type of soil has the greatest water-holding capacity?
    9·2 answers
  • Please help! AB calc
    14·1 answer
  • HELP ASAP!!! what benefits does having a scholars diploma designation bring? two or more sentences, please.
    6·1 answer
  • What part of the brain does learning a new language strengthens? action. thought. memory. all of the above​
    9·1 answer
  • If presidential candidates accept federal support in the form of matching campaign financing, then they
    9·1 answer
  • Which of the following best captures the idea of the fundamental economic problems?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!