One Reason That the Aggregate Demand Curve Has a Negative

question 377

Multiple Choice

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

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

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Definitions:

Average Profit

The mean amount of profit earned, calculated by dividing the total profit by the number of units sold or the period over which the profit was earned.

Weight Gain

An increase in body weight, which can be due to muscle mass increase, fat accumulation, or other factors.

Probability Distribution

A mathematical description of the likelihood of different outcomes in an experiment, showing how probabilities are distributed over a range of values.

Variance

A statistical measure that represents the average squared deviation from the mean, indicating how spread out a data set is.