The Aggregate Demand Curve Slopes Downward Because

question 84

Multiple Choice

The aggregate demand curve slopes downward because

• A)when inflation is lower, the Fed will lower the interest rate and potential GDP will increase.
• B)when inflation is lower, consumers want to buy more goods and services.
• C)when inflation is lower, the real interest rate is higher and firms will invest less.
• D)when inflation is lower, the Fed will lower the interest rate and spending will increase.
• E)when prices are lower, consumers want to buy more goods and services.

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Definitions:

Growth And Decline

Phases in the lifecycle of a business, product, or industry where they experience expansion and contraction in size, revenue, or market share.

Retail Outlets

Physical stores or points of sale where consumers can purchase goods or services.

Retail Life Cycle

The retail life cycle refers to the process of growth and decline that retail outlets experience, similar to the life cycle of a product, including the stages of introduction, growth, maturity, and decline.

Market Share

The share of a market held by a certain company or product, usually represented as a proportion of the total market sales.