The AD curve slopes downward because when the price level is lower, people can afford to buy
Question:
The AD curve slopes downward because when the price level is lower, people can afford to buy more and aggregate demand rises. When prices rise, people can afford to buy less and aggregate demand falls. Is this a good explanation of the shape of the AD curve? Why or why not?
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This is not a good explanation for the downward slope of the AD curve The curve actually ...View the full answer
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Related Book For 
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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