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:

Erikson

A psychologist best known for his theory on the psychosocial development of human beings, emphasizing eight stages from infancy to adulthood.

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Coping

Adaptive thinking or behavior aimed at reducing or relieving stress that arises from harmful, threatening, or challenging conditions.

Problem-focused

A coping mechanism that involves directly addressing the cause of stress in a practical way.