The aggregate demand curve is:
A) upward sloping.
B) downward sloping.
C) a vertical line.
D) a horizontal line.

Question

Quizplus · Accepted Answer

The aggregate demand curve is downward sloping because as the price level decreases, the quantity of goods and services demanded increases due to an increase in consumer spending and investment. Conversely, as the price level increases, consumers and investors reduce their spending, resulting in a decrease in quantity demanded.

The Aggregate Demand Curve Is