Which One of the Following Is a Reason for the Negative

question 94

Multiple Choice

Which one of the following is a reason for the negative slope of the aggregate demand curve?

• A)the nominal balance effect
• B)the substitution effect
• C)the expected inflation effect
• D)the income effect
• E)the real wage effect

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Definitions:

Inefficient Industry

An economic sector that fails to utilize resources optimally, resulting in lower productivity and output.

Job Losses

The elimination of positions within a company due to reasons such as economic downturns, restructuring, or automation.

Globalization

The process by which businesses, cultures, and national borders become more interconnected and interdependent, often through increased trade and communication.

Financialization

The growing dominance of financial markets, financial motives, financial institutions, and financial elites in the economy, shaping social and economic policies.