One Reason That the Aggregate Demand Curve Has a Negative

question 12

Multiple Choice

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

• A) people buy fewer goods and save more when the price level rises because their real wealth decreases.
• B) firms produce more when the price rises.
• C) people earn more money when output rises.
• D) The premise of the question is wrong because the aggregate demand curve has a positive slope.

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Definitions:

Pregnant

The state of carrying a developing fetus within the female body.

Prenatal Development

The process of growth and development that occurs from conception to birth.

Germinal

A novel by Émile Zola that highlights the harsh living and working conditions of the mining community in France during the 19th century.

Embryonic

Pertaining to an embryo or the development phase of a living being immediately after fertilization, during which rapid growth and formation of primary structures occur.