One Reason That the Aggregate Demand Curve Has a Negative

question 157

Multiple Choice

One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises,

• A) firms produce fewer goods and services.
• B) people substitute toward more imported goods and services.
• C) peoples' wealth increases.
• D) firms produce more goods and services.

---

Definitions:

Restraint of Trade

Practices or agreements that restrict free competition in business and trade, often scrutinized under antitrust laws.

Sherman Act

A landmark federal statute passed in the United States to prohibit monopolies and promote competition.

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often to create more efficient economies of scale.

Chrysler

An American automotive company, known for manufacturing and selling vehicles, and part of the larger automotive group Stellantis.