A reason the aggregate demand curve slopes downward when the price level rises is because
A) real wealth decreases.
B) real wealth increases.
C) interest rates fall.
D) None of the above answers is correct.

Question

Quizplus · Accepted Answer

When the price level rises, the purchasing power of money decreases, which reduces the real wealth of individuals. As a result, individuals spend less, leading to a decrease in aggregate demand.

A Reason the Aggregate Demand Curve Slopes Downward When the Price