The aggregate demand 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 and foreign-made goods as their relative prices change.

Question

Quizplus · Accepted Answer

The aggregate demand curve slopes downward because as the general price level increases, the purchasing power of money decreases, leading to a reduction in the quantity of goods and services demanded.

The Aggregate Demand Curve Slopes Downward Indicating That