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

Name: The aggregate demand curve A)has a positive slope. B)has a negative slope. C)is horizontal. D)is vertical.
Brand: Quizplus
Rating: 4.9 (31 reviews)

Question

Quizplus · Accepted Answer

The aggregate demand curve has a negative slope because as the price level decreases, the quantity of goods and services demanded increases, and vice versa. This inverse relationship is due to the wealth effect, interest rate effect, and exchange rate effect.

The Aggregate Demand Curve