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:
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Q1: Other things the same, a decrease in
Q3: For an economy, aggregate demand equals
A) consumption
Q4: The change in the aggregate quantity of
Q5: As the U.S. price level rises relative
Q6: The use of government taxation and expenditures
Q7: People will spend more if the price
Q8: In the AD/AS model, the aggregate demand
Q9: Which of the following helps explain why
Q10: Which of the following helps explain why
Q11: Which of the following properly describes the
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