For an economy with no international trade, the slope of ________________ reflects the
__________.

Question

Quizplus · Accepted Answer

The slope of the aggregate demand curve reflects the marginal propensity to spend out of national income. This is because the aggregate demand curve represents the total spending on goods and services in an economy at different price levels, and the marginal propensity to spend indicates how much of an additional unit of national income will be used for spending.

For an Economy with No International Trade, the Slope of ________________