The Aggregate Demand Curve Is Downward Sloping Because

question 12

Multiple Choice

The aggregate demand curve is downward sloping because:

• A) an increase in the price level will cause an increase in spending.
• B) at lower price levels, real wealth decreases, causing a decrease in the quantities of goods and services demanded.
• C) at lower price levels, interest rates decrease, causing a decrease in the quantities of goods and services demanded.
• D) at lower price levels, exports increase, causing an increase in real GDP.

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Definitions:

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