The aggregate demand curve:
A) has a constant slope.
B) slopes downward.
C) slopes upward.
D) can slope upward or downward depending on economic conditions.

Question

Quizplus · Accepted Answer

The aggregate demand curve slopes downward because as the price level increases, the quantity demanded of goods and services decreases. This is due to the wealth effect, interest rate effect, and international trade effect.

The Aggregate Demand Curve