The Aggregate Demand Curve Slopes Downward Because

question 104

Multiple Choice

The aggregate demand curve slopes downward because

• A) as price rises,consumers substitute cheaper goods for more expensive goods.
• B) all demand curves slope downward.
• C) a higher price level increases purchasing power.
• D) a higher price level increases exports.
• E) a higher price level reduces wealth.

Understand the significance of government purchases and their contribution to GDP.

Comprehend the role of Social Security payments and education spending in GDP.

Calculate personal income and disposable personal income from given data.

Understand the calculation and significance of net exports, real GDP, and the GDP deflator.

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