The Aggregate Demand Curve Slopes

question 31

Multiple Choice

The aggregate demand curve slopes:

• A) downward for the same reasons that an ordinary demand curve does.
• B) downward in part because when the price level falls, the real wealth of the public falls, and this induces people to change their consumption.
• C) downward in part because as the price level falls, the ability of households and firms to borrow cheaply increases.
• D) upward, unlike an ordinary demand curve.

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Definitions:

Competence

The ability to do something successfully or efficiently, reflecting a person's knowledge or skill.

Autonomy

The capacity to make an informed, uncoerced decision; often associated with the ability to act on one's own values and interests.

Hunger

A physical sensation and physiological need prompting the desire to eat, driven by the body's energy requirements.

Esteem Needs

in Maslow's hierarchy of needs, the fourth level, including self-esteem, confidence, achievement, respect of others, and respect by others.