One reason that the aggregate demand curve slopes downward is because
A)higher price levels increase real wealth and consumption.
B)higher price levels reduce net exports.
C)higher price levels increase interest rates.
D)higher price levels increase investment.

Question

Quizplus · Accepted Answer

When price levels are high, domestic goods become relatively more expensive compared to foreign goods. As a result, net exports decrease, causing a decrease in aggregate demand.

One Reason That the Aggregate Demand Curve Slopes Downward Is