The aggregate demand curve of an economy:
A)is downward sloping.
B)first declines and then becomes positively sloped.
C)is horizontal.
D)is vertical.
E)first rises and then becomes negatively sloped.

Question

Quizplus · Accepted Answer

The aggregate demand curve of an economy is generally downward sloping, meaning that as prices increase, the quantity of goods and services demanded by consumers and firms decreases. This is due to the inverse relationship between price levels and the purchasing power of consumers and their willingness to spend.

The Aggregate Demand Curve of an Economy