Which of the Following Is NOT a Reason the Aggregate

question 78

Multiple Choice

Which of the following is NOT a reason the aggregate demand curve slopes downward?

• A)As the price level increases, real wages decline.
• B)As the price level increases, real wealth declines.
• C)As the price level increases, the interest rate increases.
• D)As the price level increases, the exchange rate increases.

---

Definitions:

Total Product

The overall quantity of output that a firm produces, usually within a given period of time.

Marginal Product

The rise in output due to an extra unit of input.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Marginal Profit

The rise in earnings achieved by selling an extra unit of a product or service.