According to the law of aggregate demand, as the price level rises, aggregate quantity demanded decreases because spending on Canadian products and services by ________ decreases.
A) consumers
B) governments
C) R.O.W.
D) businesses
E) consumers and R.O.W.

Question

Quizplus · Accepted Answer

The law of aggregate demand states that as the price level rises, the aggregate quantity demanded decreases. This is because spending on Canadian products and services by both domestic consumers and foreign consumers (R.O.W. or rest of the world) decreases as prices rise, ultimately leading to a decrease in total aggregate demand. Therefore, options A, B, C, and D cannot be the correct choices as they only represent one part of the equation.

According to the Law of Aggregate Demand, as the Price