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Explain the three reasons the aggregate demand curve slopes downward.
Sustainable Growth Rate
The maximum rate at which a company can grow its earnings without needing to increase external financing.
Capital Intensity Ratio
refers to a financial ratio that measures the amount of fixed assets a company uses to generate its sales revenue, indicating the level of investment needed to maintain current sales levels.
Profit Margin
A financial metric expressing the ratio of net income to sales, showing the percentage of revenue that remains as profit after all expenses are paid.
Population Average
The mean value of a particular characteristic for the entire population being studied.
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