One Reason That the Aggregate Demand Curve Has a Negative

question 131

Multiple Choice

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

• A) people earn more money when output rises.
• B) people buy fewer goods and save more when the price level rises because their real wealth decreases.
• C) firms produce more when the price rises.
• D) The premise of the question is wrong because the aggregate demand curve has a positive slope.

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