Are the four components of planned aggregate expenditures a. consumption, investment, inventories, and government purchases. b. consumption, planned investment, unplanned changes in inventory, and exports. c. consumption, investment, government purchases, and net exports. d. consumption, investment, exports and imports. 27. the aggregate demand (ad) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate quantity of goods and services demanded c. a change in the interest rate will alter the aggregate quantity of goods and services demanded. d. consumers substitute between domestic-made goods as their prices change. 28. as prices rise, a fixed money supply will be able to buy fewer goods and services. this real balance effect is due to an) a. reduction in the interest rate. b. increase in aggregate demand c. decline in the purchasing power of the fixed quantity of money. d. increase in income. 29. the international substitution effect exists because a a. higher price level will reduce interest rates and stimulate foreign investment b. lower price level will make domestically produced goods less expensive relative to foreign goods. c. higher price level will reduce the purchasing power of money. d. lower price level will encourage americans to import more foreign goods. 30. if decrease in the stock market causes a decrease in the real wealth of individuals, the a. aggregate demand curve will shift to the left. b. long-run aggregate supply will shift to the left. c. general price level will increase. d. aggregate demand curve will shift to the right.