Solved

The Aggregate Demand Curve Is Downward Sloping Because

Question 2

Multiple Choice

The aggregate demand curve is downward sloping because


A) an increase in the price level will cause an increase in spending on goods and services.
B) at lower price levels, real wealth decreases, causing a decrease in the quantity demanded of goods and services.
C) at lower price levels, interest rates increase, causing a decrease in the quantity demanded of goods and services.
D) at lower price levels, net exports increase, causing an increase in quantity demanded of goods and services.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents