The aggregate demand curve
A) is horizontal.
B) has a negative slope.
C) is vertical.
D) has a positive slope.

Question

Quizplus · Accepted Answer

The aggregate demand curve has a negative slope because as the price level increases, the quantity of goods and services demanded decreases due to a decrease in real wealth, an increase in interest rates, and a decrease in net exports. Conversely, as the price level decreases, the quantity of goods and services demanded increases.

The Aggregate Demand Curve