The aggregate demand curve that shows the _______ relationship between the price level and the quantity of real GDP demanded.
A) exponential
B) positive
C) linear
D) negative

Question

Quizplus · Accepted Answer

The aggregate demand curve shows a negative relationship between the price level and the quantity of real GDP demanded because as the price level increases, the quantity of real GDP demanded decreases due to factors such as higher interest rates, increased costs of production, and lower consumer purchasing power.

The Aggregate Demand Curve That Shows the _______ Relationship Between