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One Reason That the Aggregate Demand Curve Has a Negative

Question 25

Multiple Choice

One reason that the aggregate demand curve has a negative slope is because


A) The premise of the question is wrong because the aggregate demand curve has a positive slope.
B) people buy fewer goods and save more when the price level rises because their real wealth decreases.
C) firms produce more when the price rises.
D) people earn more money when output rises.

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