Which One of the Following Is a Reason for the Negative

question 67

Multiple Choice

Which one of the following is a reason for the negative slope of the aggregate demand curve?

• A)the real wage effect
• B)the substitution effects
• C)the expected inflation effect
• D)the nominal balance effect
• E)the income effect

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Definitions:

Consumer

An individual who purchases goods or services for personal use, not for manufacture or resale.

Consumption Effects

The impact of consumer behavior on the economy, environment, and society, including both positive and negative consequences.

Product Cannibalization

A situation where a new product significantly reduces the sales or market share of the company's existing products.

Media Promotion

The use of various media channels, such as TV, radio, the internet, and social media, to advertise and promote a product, service, or brand to a wide audience.