ECN 506 Lecture Notes - Lecture 7: Real Interest Rate, Aggregate Supply, Aggregate Demand
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The total amount of physical capital in all firms and households is called the. Q: physical policy, capital stock, steady state. d. investment sum. A rise in the real interest rate will cause business investment spending to. A rise in wealth will cause household investment in housing to. The aggregate-demand curve shows the combinations of ____ and ____ that are. When all capital and labor are fully utilized, the economy is said to be. Q: at the peak of the business cycle, about to start an expansion, at full employment, satiated with total factor productivity. The amount of output produced when the economy is at full employment is called. ________ output: natural, aggregate c. d. full-employment long-run. Q. long-run aggregate-supply curve a: slopes down. c. is horizontal, slopes up. A rise in the price level causes long-run aggregate supply to. Q: decline, not change. c. d. rise. rise at first, then decline later.