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

Question

Quizplus · Accepted Answer

The aggregate demand curve typically has a downward sloping shape, indicating that as prices increase, the quantity of real output demanded decreases. This is due to the wealth effect, interest rate effect, and international trade effect, all of which contribute to a decrease in consumption, investment, and net exports as prices rise.

The Aggregate Demand Curve Is Usually