Explain Why the Aggregate Demand Curve Is Downward Sloping

question 212

Essay

Explain why the aggregate demand curve is downward sloping.(As the price level falls,the quantity of real output demanded increases. ).List five factors that might cause the AD curve to shift outward.

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Definitions:

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary data source for the financial statements.

Accounts Receivable

Unpaid amounts by customers to a company for goods or services already rendered.

Cash Receipts Journal

A dedicated journal used to record all cash inflows or receipts of a business.

Sales of Merchandise

The total revenue generated from selling goods that are intended for resale as part of a company's normal business operations.