The aggregate demand curve slopes downward because at a higher price level:
A) the purchasing power of consumers' assets declines and consumption increases.
B) the purchasing power of consumers' wealth declines and consumption decreases.
C) producers can get more for what they produce, and they increase production.
D) the purchasing power of consumers' wealth increases and consumption increases.

Question

Quizplus · Accepted Answer

The aggregate demand curve slopes downward because a higher price level reduces the purchasing power of consumers' wealth, leading to a decrease in consumption.

The Aggregate Demand Curve Slopes Downward Because at a Higher