The aggregate demand curve:
A) is horizontal
B) slopes upward to the right
C) is vertical
D) slopes downward to the right

Name: The aggregate demand curve: A) is horizontal B) slopes upward to the right C) is vertical D) slopes downward to the right
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Question

Quizplus · Accepted Answer

The aggregate demand curve slopes downward to the right because, as the price level decreases, the quantity of goods and services demanded increases, due to the wealth effect, interest rate effect, and exchange rate effect.

The Aggregate Demand Curve