One Reason That the Aggregate Demand Curve Has a Negative

question 425

Multiple Choice

One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises,

• A) firms produce more goods and services.
• B) firms produce fewer goods and services.
• C) people substitute toward more imported goods and services.
• D) peoples' wealth increases.

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Definitions:

Operating Cycle

The duration of time from the purchase of raw materials to the collection of receivables resulting from sales.