The Aggregate Demand Curve Is Downward Sloping Because

question 114

Multiple Choice

The aggregate demand curve is downward sloping because

• A) an increase in the price level will cause an increase in spending on goods and services.
• B) at lower price levels, real wealth decreases, causing a decrease in the quantity demanded of goods and services.
• C) at lower price levels, interest rates increase, causing a decrease in the quantity demanded of goods and services.
• D) at lower price levels, net exports increase, causing an increase in quantity demanded of goods and services.