Which One of the Following Is a Reason for the Negative

question 67

Multiple Choice

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

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

---

Definitions:

Surplus

Situation in which the quantity supplied exceeds the quantity demanded.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price within a specific time period.