One Reason Why the Aggregate Demand (AD)curve Slopes Downward Is

question 57

Multiple Choice

One reason why the aggregate demand (AD) curve slopes downward is that

• A)increased production results in lower production costs.
• B)when the price level falls consumers increase their saving rate.
• C)aggregate expenditure increases as the price level rises.
• D)decreases in the price level cause increases in private- sector wealth which lead to increases in desired consumption.
• E)when the price level falls firms must compete more when output increases.

---

Definitions:

Auditory Ossicles

The three bones of the middle ear that transmit the vibrations of the eardrum to the oval window.

Oval Window

The membrane separating the middle ear from the inner ear.

Transducer

A device that converts one form of energy into another, widely used in various applications, including in sensors and audio technology.

Eardrum

A thin membrane that vibrates in response to sound waves, playing a key role in the process of hearing.