Which of the following does not explain why the aggregate demand curve is negatively sloped?
A)misperception effect
B)open economy effect
C)real wealth effect
D)interest rate effect

Question

Which of the following does not explain why the aggregate demand curve is negatively sloped?
A)​misperception effect
B)​open economy effect
C)​real wealth effect
D)​interest rate effect

Quizplus · Accepted Answer

The misperception effect explains why the short-run aggregate supply curve might shift, not why the aggregate demand curve is negatively sloped. The other options (B, C, D) are reasons for the downward slope of the aggregate demand curve.

Which of the Following Does Not Explain Why the Aggregate