One Reason That the Aggregate Demand Curve Has a Negative

question 291

Multiple Choice

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

• A) firms supply more when prices rise.
• B) people buy more foreign goods when the domestic price level rises.
• C) the amount of money in the economy increases when the price level rises.
• D) firms supply less when prices rise.

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Definitions:

Plethysmogram

A graph or recording that measures changes in volume within an organ or whole body (often the blood volume changes in the limbs).

Pressure Wave

A type of wave mechanism that occurs when a fluid or gas changes velocity, often seen in the circulatory system as a pulse.

Blood Volume

The total amount of blood circulating within an individual's vascular system.

Ventricular Systole

The phase of the heartbeat when the ventricles contract, pumping blood out of the heart and into the arteries.