Why Does the Aggregate Demand Curve Slope Downward

question 96

Multiple Choice

Why does the aggregate demand curve slope downward?  

• A) because, at a higher price level, fewer goods and services are available 
• B) because the periods when the price level is rising are usually times of swift declines in economic activity 
• C) because households feel poorer when average prices increase 
• D) because if the Canadian price level rises, foreigners will buy more Canadian goods, leaving fewer Canadian goods for domestic consumers

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