The Aggregate Demand Curve Is a Straight Line with a Slope

question 204

Multiple Choice

The aggregate demand curve is a straight line with a slope of _____.

• A) 0
• B) 1
• C) -1
• D) -10

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Definitions:

Economic Theory

A set of principles and models that explain how economies function and how economic agents interact.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale at those prices.

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good that consumers are willing to purchase.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one variable change.