One Reason That the Aggregate Demand Curve Has a Negative

question 52

Multiple Choice

One reason that the aggregate demand curve has a negative slope is because

• A) the amount of money in the economy increases when the price level rises.
• B) firms supply less when prices rise.
• C) people buy more foreign goods when the domestic price level rises.
• D) firms supply more when prices rise.

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Definitions:

Market Structure

The organizational and other characteristics of a market that influence the nature of competition and pricing.

Oligopolistic Industry

A market structure dominated by a small number of large firms, leading to limited competition and potentially higher prices for consumers.

Coca-Cola

A carbonated soft drink brand that is recognized worldwide, known for its secret formula and wide range of flavors.

Pepsi

A popular carbonated soft drink manufactured by PepsiCo.