The aggregate demand curve slopes downward because when the price level is lower, people can afford to
Question:
The aggregate demand 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?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Susan Juma
I'm available and reachable 24/7. I have high experience in helping students with their assignments, proposals, and dissertations. Most importantly, I'm a professional accountant and I can handle all kinds of accounting and finance problems.
15+ Reviews
45+ Question Solved
Related Book For 
Principles Of Economics
ISBN: 9780593183540
10th Edition
Authors: Case, Karl E.;Oster, Sharon M.;Fair, Ray C
Question Posted:
