The aggregate demand (AD) curve presented in the textbook has its particular shape because of which of the following explanations?
A) an increase in the money supply (M) will cause a reduction in the interest rate,an increase in investment,and an increase in output .
B) an increase in the aggregate price level (P) will cause an increase in the interest rate and a reduction in output.
C) an increase in P will cause a reduction in the real wage,an increase in employment,and an increase in output.
D) as P decreases in a closed economy,goods and services become relatively cheaper and individuals respond by increasing the quantity demanded of goods and services.
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