Which of the Following Helps Explain Why the Aggregate Demand

question 10

Multiple Choice

Which of the following helps explain why the aggregate demand curve slopes downward?

• A) If the price level increases, the purchasing power of the fixed quantity of money decreases, causing people to buy less.
• B) If the price level increases, the purchasing power of the fixed quantity of money increases, causing people to buy more.
• C) If domestic prices increase, we substitute domestic goods for imported goods.
• D) If domestic prices decrease, we substitute imported goods for domestic goods.

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Definitions:

Social Influence

Refers to the effect that the words, actions, or mere presence of other people have on our thoughts, feelings, attitudes, or behaviors.

Industrial Unions

Labor unions that represent all workers, skilled and unskilled, within a particular industry.

Professional Workers

Employed individuals possessing specialized skills, qualifications, and knowledge, typically in fields requiring advanced education.

White-collar Workers

Employees who perform professional, clerical, managerial, or administrative work, typically in an office setting.