Which of the Following Explains Why the Aggregate Demand Curve

question 87

Multiple Choice

Which of the following explains why the aggregate demand curve slopes downward?

• A)If the price level increases,we feel poorer and therefore buy less.
• B)If the price level increases,we feel richer and therefore buy more.
• C)If domestic prices increase,we substitute domestic goods for imported ones.
• D)If the price of a particular good increases,we substitute away from that good.
• E)A decrease in the price of a particular good is like an increase in income and therefore we buy more.

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Definitions:

Instinctive Pattern

Behaviors that are innate, performed without being learned, and typical of a particular species.

Newly Hatched Cuckoos

Young cuckoo birds that have recently emerged from their eggs, commonly known for being brood parasites by laying their eggs in the nests of other bird species.

Dominance Hierarchy

The organization of individuals in a group that occurs when competition for resources leads to a ranking of individuals by dominance.