Multiple Choice
Which of the following correctly describes one reason why the aggregate demand (AD) curve slopes downward?
A) Aggregate expenditure increases as the price level rises,which leads to a rise in real GDP.
B) Decreases in the price level cause increases in privatE-sector wealth which lead to increases in desired consumption.
C) The increase in total output associated with the fall in the price level results in lower production costs.
D) When the price level falls,firms must be more competitive when output increases.
E) When the price level falls,consumers increase their saving rate.
Correct Answer:

Verified
Correct Answer:
Verified
Q113: Consider the basic AD/AS model.If firms' unit
Q114: Which of the following would likely cause
Q115: An exogenous fall in the domestic price
Q116: The aggregate supply curve tends to be
Q117: Other things being equal,an exogenous fall in
Q119: The aggregate supply curve is usually assumed
Q120: Consider the AD curve in the simple
Q121: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 23-1 Refer
Q122: Consider the relationship between the AE curve
Q123: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 23-5 Refer