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One Reason That the Aggregate Demand Curve Has a Negative

Question 131

Multiple Choice

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


A) people earn more money when output rises.
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) The premise of the question is wrong because the aggregate demand curve has a positive slope.

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