What does the slope of the aggregate demand curve indicate?
A)That a decrease in the price level leads to a higher level of aggregate spending.
B)That a decrease in the price level leads to a higher level of aggregate supply.
C)That a decrease in the price level leads to a lower level of aggregate spending.
D)That an increase in the price level leads to a higher level of aggregate spending.

Question

Quizplus · Accepted Answer

The slope of the aggregate demand curve indicates that as the price level decreases, consumers are able to purchase more goods and services, leading to an increase in aggregate spending. This is because lower prices increase the purchasing power of consumers' money, encouraging more spending.

What Does the Slope of the Aggregate Demand Curve Indicate