All of the Following Explain the Downward Slope of the Aggregate

question 162

Multiple Choice

All of the following explain the downward slope of the aggregate demand curve EXCEPT

• A) changes in the stock of real wealth held by individuals.
• B) the effect of changing interest rates on the quantity demanded of interest-rate-sensitive goods.
• C) the availability of foreign substitute goods.
• D) the presence of unused production capacity and unemployment.

---

Definitions:

Peripheral Nervous

refers to the part of the nervous system that lies outside the central nervous system, comprising nerves and ganglia, responsible for relaying information to and from the body and brain.

Endocrine

Relates to the system of glands that release hormones directly into the bloodstream to regulate various bodily functions, including growth, metabolism, and mood.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column.

Autonomic Nervous System

A part of the nervous system responsible for controlling involuntary bodily functions such as heartbeat and digestion.