Explain why the Keynesian aggregate demand schedule is downward sloping when plotted against the price level.

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Macroeconomics Theories and Policies

ISBN: 978-0132831529

10th edition

Authors: Richard T. Froyen

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Question Posted: May 24, 2016 06:44 AM

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Explain why the Keynesian aggregate demand schedule is downward sloping when plotted against the price level.

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An increase in the price level reduces the real money stock As a consequence the in...View the full answer

Macroeconomics Theories and Policies

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