In the tiny island of Pangea, national wealth is broken down as follows: 30 percent is cash

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In the tiny island of Pangea, national wealth is broken down as follows: 30 percent is cash in checking and savings accounts, 40 percent is real estate, and 30 percent is stock holdings. Last year, Pangea experienced an inflation rate of 0 percent, real estate prices increased by 7 percent, and stock prices increased by 21 percent. Explain what happened to real wealth within Pangea last year, and how this change in real wealth helps explain the downward slope of the aggregate demand curve.

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