If the price level falls, the real value of a dollar Group of answer choices falls, so people will want to buy less. This response helps explain the slope of the aggregate demand curve. rises, so people will want to buy more. This response helps explain the slope of the aggregate demand curve. falls, so people will want to buy less. This response shifts aggregate demand to the left. rises, so people will want to buy more. This response shifts aggregate demand to the right.

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.

When immigration adds to the size of the domestic labor pool, which of the following is likely to occur? a. wages decrease. b. productivity increases. c. consumption decreases. d. minimum wage increases.