Which of the following is a reason why the aggregate demand curve slopes downward?
A)At a higher price level,fewer goods and services are available.
B)Periods when the price level is rising are usually times of swift declines in economic activity.
C)Households feel poorer with an increase in average prices.
D)If the U.S.price level rises,foreigners will buy more U.S.goods,leaving fewer U.S.goods for domestic consumers.
E)As the price level rises,business leaders become pessimistic about the future and reduce production.

Question

Quizplus · Accepted Answer

As the price level increases, the purchasing power of consumers decreases, leading to a decrease in consumption spending. This, in turn, leads to a decrease in demand for goods and services, causing the aggregate demand curve to slope downward.

Which of the Following Is a Reason Why the Aggregate