One Reason That the Aggregate Demand Curve Has a Negative

question 149

Multiple Choice

One reason that the aggregate demand curve has a negative slope is because

• A)people buy more foreign goods when the domestic price level rises.
• B)firms supply less when prices rise.
• C)firms supply more when prices rise.
• D)the amount of money in the economy increases when the price level rises.

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Definitions:

Fluid Intelligence

The capability to solve new problems, use logic in new situations, and identify patterns without relying on pre-existing knowledge.

Crystallized Intelligence

Crystallized intelligence refers to the ability to use skills, knowledge, and experience, which tends to increase over a person's lifetime.

Fluid Intelligence

The capacity to reason quickly and think abstractly, enabling problem solving and the ability to adapt to novel situations.

Problem Solving

The process of working through details of an issue to reach a solution, often involving critical thinking and logic.