One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises,
A)firms produce more goods and services.
B)people substitute toward more imported goods and services.
C)firms produce fewer goods and services.
D)people's wealth increases.

Question

Quizplus · Accepted Answer

When the domestic price level rises, imported goods and services become relatively cheaper, leading people to substitute towards these imports, reducing the quantity of domestic goods and services demanded.

One Reason That the Aggregate Demand Curve Has a Negative