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2 . Why the aggregate demand curve slopes downward (fill in the blanks below with the correct selection) The following graph shows the aggregate demand
2 . Why the aggregate demand curve slopes downward (fill in the blanks below with the correct selection)
The following graph shows the aggregate demand (AD) curve in a hypothetical economy. At point A, the price level is 140, and the quantity of output demanded is $300 billion. Moving down along the aggregate demand curve from point A to point B, the price level falls to 120, and the quantity of output demanded rises to $500 billion.
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