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Following arguments explain why Aggregate Demand curve shows downward sloping to the right side. Answer each argument by T (true) or F (false). (1)When price
Following arguments explain why Aggregate Demand curve shows downward sloping to the right side. Answer each argument by T (true) or F (false). (1)When price falls, real wage rises. So increase in labor supply causes Aggregate Demand curve downward sloping to right side. (2)In case of price falls, real money balance rises and interest rate falls. Increase in investment causes Aggregate Demand curve downward sloping to right side. (3) When price falls, home currency depreciates. This causes net export increase and Aggregate Demand curve downward sloping to right side. (4)When price falls, real asset value (wealth) of household rises. This causes rise in consumption and Aggregate Demand curve downward sloping to right side
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