Which of the following are reasons that the aggregate demand curve is downward sloping? Group of answer choices If the price level rises, US exports become more expensive, and foreign consumers buy less. If governments pass laws that increase the level of spending in the economy so AD increases. If the price level falls, people save more, interest rates fall, and investment rises. If the price level falls, the purchasing power of real wealth rises and consumers buy more. When the price of one consumer good rises, consumers substitute away from that good, and the level of consumption stays the same. If the price level rises, the purchasing power of real wealth falls and consumers buy less.

Which of the following are reasons that the aggregate demand curve is downward sloping? Group of answer choices If the price level rises, US exports become more expensive, and foreign consumers buy less. If governments pass laws that increase the level of spending in the economy so AD increases. If the price level falls, people save more, interest rates fall, and investment rises. If the price level falls, the purchasing power of real wealth rises and consumers buy more. When the price of one consumer good rises, consumers substitute away from that good, and the level of consumption stays the same. If the price level rises, the purchasing power of real wealth falls and consumers buy less.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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