One of the Reasons Why the Aggregate Demand (AD)curve Slopes

question 25

Multiple Choice

One of the reasons why the aggregate demand (AD) curve slopes downward is that

• A)aggregate expenditure increases as the price level rises.
• B)increases in the price level cause consumers to substitute foreign goods for domestic goods.
• C)increased production results in lower production costs.
• D)when the price level falls firms must be more competitive when output increases.
• E)when the price level falls consumers increase their saving rate.

---

Definitions:

Psychological Problems

Mental health disorders or conditions affecting a person’s thinking, emotional state, and behavior.

Stress Inoculation Program

A preventative strategy designed to equip individuals with coping mechanisms to handle anticipated stressors effectively.

Skills Acquisition

is the process of learning new skills or improving existing ones through practice and education.

Cognitive Behavioral Therapy

A form of psychotherapy that treats problems and boosts happiness by modifying dysfunctional emotions, behaviors, and thoughts.