The repercussions that the money wealth and international effects have on aggregate production and aggregate expenditure cause the aggregate demand curve to become steeper than it would be without such repercussions.

Question

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The aggregate demand curve is typically downward sloping, indicating that as prices fall, the quantity of goods and services demanded increases. The repercussions of money, wealth, and international effects on aggregate production and expenditure do not cause the aggregate demand curve to become steeper; instead, these factors shift the curve left or right depending on whether they decrease or increase aggregate demand.

The Repercussions That the Money Wealth and International Effects Have