The fact that the aggregate demand curve slopes downward means that aggregate expenditures increase when the price level decreases.

Question

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This is because when the price level decreases, consumers and businesses are able to buy more goods and services with the same amount of income or expenditures. This results in an increase in aggregate demand, as people tend to spend more when things are cheaper. Conversely, when the price level increases, people tend to reduce their overall expenditures and demand for goods and services, leading to a downward slope in the aggregate demand curve.

The Fact That the Aggregate Demand Curve Slopes Downward Means