The General Shape of an Aggregate Demand Curve Is

question 2

Multiple Choice

The general shape of an aggregate demand curve is

• A) downward sloping because of financial factors.
• B) downward sloping because higher prices mean lower quantities demanded.
• C) upward sloping because higher prices elicit greater output.
• D) vertical because potential GDP is defined by capacity and labor availability.
• E) a and b.

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