The aggregate demand curve shows a negative relationship between the price level and the quantity of aggregate output demanded.

Question

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This is the basic premise of the aggregate demand curve, which is a downward sloping curve representing the inverse relationship between the price level and quantity of aggregate output demanded in an economy. When the price level decreases, consumers and businesses in general are willing and able to demand more goods and services, leading to an increase in aggregate output demanded. Conversely, a higher price level tends to decrease aggregate output demanded.

The Aggregate Demand Curve Shows a Negative Relationship Between the Price