One Explanation for the Slope of the Aggregate Demand Curve

question 20

Multiple Choice

One explanation for the slope of the aggregate demand curve is that:

• A)nominal income falls and so does the demand for goods and services as prices rise.
• B)falling prices make people feel poorer and reduce spending.
• C)the government spends less to drive the price level back to normal as prices rise.
• D)businesses increase spending when inflation is high and rising.
• E)domestic goods become more expensive relative to foreign goods when prices rise,reducing exports.

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Definitions:

Contingency Approaches

Management theories suggesting that the best way to handle any situation depends on the specific circumstances, rather than a one-size-fits-all solution.

Leader Behavior

The actions and conduct exhibited by individuals in leadership positions, influencing the group's activities and the achievement of its goals.

Leadership Effectiveness

The degree to which a leader is able to achieve desired objectives or outcomes by influencing others.

Supportive Leadership

Focuses on subordinate needs, well-being, and promotion of a friendly work climate.