The aggregate demand curve is
A) downward sloping.
B) vertical.
C) horizontal.
D) U shaped.

Question

Quizplus · Accepted Answer

The aggregate demand curve is downward sloping, which means that as the price level increases, the quantity of goods and services demanded decreases. This is because higher prices lead to a decrease in consumer purchasing power and an increase in the cost of production for businesses. As a result, consumers and businesses will decrease their demand for goods and services, leading to a decrease in overall aggregate demand.

The Aggregate Demand Curve Is