The Downward-Sloping Aggregate Demand Curve Is Partly Due to The

question 134

Multiple Choice

The downward-sloping aggregate demand curve is partly due to the:

• A) positive relationship between the price level and net exports.
• B) negative relationship between the price level and net exports.
• C) positive relationship between the price level and government spending.
• D) negative relationship between the price level and government spending.

---

Definitions:

Price Ratio

The relative price of one good or service compared to another, often indicating how many units of one good can be exchanged for one unit of another.

Price

The monetary value anticipated, needed, or dispensed for acquiring something.

Utility Increases

A situation where the satisfaction or benefit derived from consuming goods or services rises.

Diminishing Marginal Utility

The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit decreases.