The Aggregate Demand Curve Slopes Downward Indicating That

question 9

Multiple Choice

The aggregate demand curve slopes downward indicating that

• A) an increase in the general price level will reduce the aggregate quantity of goods and services demanded.
• B) an increase in the general price level will increase the aggregate quantity of goods and services demanded.
• C) an increase in the interest rate will  increase the aggregate quantity of goods and services demanded.
• D) consumers purchase more domestic-made goods and fewer foreign-made goods as  the prices of domestic goods increase.

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Definitions:

Blinking

A rapid, involuntary action involving the immediate opening and closing of the eyelids to lubricate and protect the eye.

Meter Stick

A measuring stick one meter long, used for measuring lengths or distances.

Peripheral Nervous System

The portion of the nervous system that consists of nerves and ganglia outside of the brain and spinal cord.

Myelin

The fatty substance that surrounds and insulates the axons of some neurons, enhancing the speed of electrical signal transmission.