Another reason for the downward slope of the aggregate demand curve is the effect of inflation on the:
A)real value of net assets
B)real value of properties held by investors
C)nominal value of net assets
D)real value of equilibrium output

Question

Quizplus · Accepted Answer

Inflation decreases the real value of net assets, which means that individuals and businesses will have less purchasing power and will therefore decrease their demand for goods and services, leading to a downward slope in the aggregate demand curve.

Another Reason for the Downward Slope of the Aggregate Demand