Which of the Following Is a Reason Why the Aggregate

question 17

Multiple Choice

Which of the following is a reason why the aggregate demand curve slopes downward?

• A)At a higher price level,fewer goods and services are available.
• B)Periods when the price level is rising are usually times of swift declines in economic activity.
• C)Households feel poorer with an increase in average prices.
• D)If the U.S.price level rises,foreigners will buy more U.S.goods,leaving fewer U.S.goods for domestic consumers.
• E)As the price level rises,business leaders become pessimistic about the future and reduce production.

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Definitions:

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