The aggregate demand curve is downward sloping because an increase in the price level (with the nominal stock of money fixed) will

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The aggregate demand curve is downward sloping because an increase in the price level, with the nominal stock of money fixed, reduces the real money supply. This leads to higher interest rates, which in turn reduces investment and output. This effect is captured by a leftward shift of the LM curve in the IS-LM model, as the LM curve represents the combinations of interest rates and output for which the money market is in equilibrium.

The Aggregate Demand Curve Is Downward Sloping Because an Increase