Aggregate demand curves are
A) downward sloping.
B) upward sloping.
C) horizontal.
D) vertical.

Question

Quizplus · Accepted Answer

Aggregate demand curves are downward sloping because as the price level increases, the quantity of goods and services demanded decreases due to decreased purchasing power and increased interest rates. Conversely, as the price level decreases, the quantity of goods and services demanded increases due to increased purchasing power and decreased interest rates.

Aggregate Demand Curves Are