What Are the Three Reasons for the Downward Slope of the Aggregate

question 173

Essay

What are the three reasons for the downward slope of the aggregate demand curve?

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Definitions:

Abraham Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy, from most pressing at the bottom to the need for self-actualization at the top.

Equity Theory

Is concerned with a person’s perceived inputs to a (work) setting and the outcomes received from that setting. The theory suggests that everyone calculates the ratio of inputs to outcomes, similar to considering a return on any investment.

Human Resource Managers

Professionals responsible for overseeing an organization's personnel management, including recruitment, training, benefits, and compliance with labor laws.

Intrinsic Motivation

The drive to engage in an activity or behavior for its own sake, finding personal satisfaction and fulfillment rather than for some separable consequence like monetary reward.