The Best Explanation of Why the Aggregate Demand Curve Has

question 31

Multiple Choice

The best explanation of why the aggregate demand curve has a negative slope is that

• A)at a higher price level households cut back on their spending on goods and services.
• B)at a higher price level business firms wish to produce more goods and services.
• C)a higher price level results in lower real balances and a higher real interest rate.
• D)a higher price level results in less government spending on transfers, such as unemployment insurance and social security payments.

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Definitions:

Pulsus Alternans

A physical finding where there is alternating amplitude of the pulse with each beat, usually indicating left ventricular dysfunction.

Pulsus Bigeminus

A pattern of the heartbeat where normal beats alternate with premature contractions or abnormal beats, typically felt as an irregular pulse.

Doppler Ultrasonic Stethoscope

A device that uses the Doppler effect to measure the velocity of blood flow through the body's vessels.

Venous Flow

The movement of blood back to the heart through the veins, an essential component of the circulatory system's function.