Which Effect Best Explains the Downward Slope of the Aggregate

question 152

Multiple Choice

Which effect best explains the downward slope of the aggregate demand curve?

• A)a multiplier effect
• B)an income effect
• C)a substitution effect
• D)an interest rate effect

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Definitions:

Control Finances

Managing and regulating one's financial activities or the financial activities of an organization to ensure stability and growth.

NFIB Survey

A research tool used by the National Federation of Independent Business to collect data on small business trends and sentiments.

Poor Earnings

A term used to describe a lower than expected profit or loss reported by a company, indicating underperformance.

Herzberg

Refers to Frederick Herzberg, and emphasizes his work in motivational theory, specifically the differentiation between factors that increase job satisfaction and those that reduce dissatisfaction.