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Explain why the following statements are false. a. “The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods.” b. “The long-run aggregate-supply curve is vertical because economic forces do not affect long-run aggregate supply.” c. “If firms adjusted their prices every day, then the short-run aggregate-supply curve would be horizontal.” d. “Whenever the economy enters a recession, […]

Explain why the following statements are false. a. “The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods.” b. “The long-run aggregate-supply curve is vertical because economic forces do not affect long-run aggregate supply.” c. “If firms adjusted their prices every day, then the short-run aggregate-supply curve would be horizontal.” d. “Whenever the economy enters a recession, […]

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