The Best Explanation of Why the Aggregate Demand Curve Has

question 31

Multiple Choice

The best explanation of why the aggregate demand curve has a negative slope is that

• A)at a higher price level households cut back on their spending on goods and services.
• B)at a higher price level business firms wish to produce more goods and services.
• C)a higher price level results in lower real balances and a higher real interest rate.
• D)a higher price level results in less government spending on transfers, such as unemployment insurance and social security payments.

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Definitions:

Self-Incompatibility

A genetic condition in which the pollen cannot fertilize the same flower or flowers on the same plant.

Pollen

Fine to coarse powdery substance comprising pollen grains, which are male microgametophytes of seed plants, responsible for the transfer of sperm to ovules.

Apomixis

A type of plant reproduction method in which seeds form without the need for fertilization, resulting in progeny that are genetically the same as the parent plant.

Fruit Species

Refers to the various types of fruit-bearing plants or trees classified based on genetic, morphological, and ecological characteristics.