Why Does the Aggregate Demand Curve Slope Downward

question 143

Essay

Why does the aggregate demand curve slope downward?

---

Definitions:

Maximise

To increase something to its greatest possible amount or degree.

Input

Resources such as labor, materials, and energy that are used in the production process of goods or services.

Production Function

A mathematical representation that describes the relationship between inputs used in production and the resulting output.

Output

The aggregate sum of products or services generated by a business, sector, or economic system.