Because the price level shares a negative relationship with aggregate expenditures on GDP, the aggregate demand curve is:
A) downward sloping.
B) upward sloping.
C) perfectly elastic.
D) perfectly inelastic.

Question

Quizplus · Accepted Answer

The negative relationship between the price level and aggregate expenditures on GDP means that as prices rise, consumers and firms will spend less, leading to a decrease in aggregate demand. This results in a downward-sloping aggregate demand curve.

Because the Price Level Shares a Negative Relationship with Aggregate