One reason that the aggregate demand curve has a negative slope is because
A)people buy more foreign goods when the domestic price level rises.
B)firms supply less when prices rise.
C)firms supply more when prices rise.
D)the amount of money in the economy increases when the price level rises.

Question

Quizplus · Accepted Answer

When the domestic price level rises, domestic goods become relatively more expensive compared to foreign goods, leading consumers to buy more foreign goods, which reduces the quantity of domestic goods demanded, contributing to the negative slope of the aggregate demand curve.

One Reason That the Aggregate Demand Curve Has a Negative