One Reason That the Aggregate Demand Curve Has a Negative

question 321

Multiple Choice

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

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

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Definitions:

Parameter Data

Data or values that define or control the behavior of a mathematical function or system.

Nominal Data

This data type categorizes variables without a natural order or ranking among the categories.

Ordinal Data

A type of categorical data in which the order of values is significant, but the differences between values are not necessarily consistent.

Interval Data

A type of data measurement that not only keeps order but also has consistent differences between consecutive values, without a true zero point.