Which of the following is NOT a reason the aggregate demand curve slopes downward?
A)As the price level increases, real wages decline.
B)As the price level increases, real wealth declines.
C)As the price level increases, the interest rate increases.
D)As the price level increases, the exchange rate increases.

Question

Quizplus · Accepted Answer

The aggregate demand curve slopes downward primarily due to the wealth effect, interest rate effect, and exchange rate effect. Real wages declining as the price level increases is not a reason for the downward slope of the aggregate demand curve.

Which of the Following Is NOT a Reason the Aggregate