The Best Explanation of Why the Aggregate Demand Curve Has

question 19

Multiple Choice

The best explanation of why the aggregate demand curve has a negative slope is that

• A) at a higher price level households cut back on their spending on goods and services.
• B) at a higher price level business firms wish to produce more goods and services.
• C) a higher price level results in lower real money balances and a higher real interest rate.
• D) a higher price level results in less government spending on transfers, such as unemployment insurance and social security payments.

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Definitions:

Temperature Data

Numerical information that represents the measurement of heat energy within a specific area or system, often used in climate and environmental studies.

Chemistry

The scientific discipline that studies the properties, composition, and transformation of substances.

Densest

Having the highest density; pertaining to material that has the greatest mass per unit volume.

Density

The mass of a substance per unit volume, often used to describe the compactness of materials in physics and earth sciences.