Which of the following helps explain why the aggregate demand curve slopes downward?
a. If the price level increases, the purchasing power of the fixed quantity of money decreases, causing people to buy less.
b. If the price level increases, the purchasing power of the fixed quantity of money increases, causing people to buy more.
c. If domestic prices increase, we substitute domestic goods for imported goods.
d. If domestic prices decrease, we substitute imported goods for domestic goods.
A
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Figure 4.3 illustrates the demand for tacos. A decrease in the demand for tacos is represented by the movement from:
A. point a to point b. B. point c to point b. C. D2 to D1. D. D0 to D1.
A demand curve is defined as the relationship between:
A. the price of a good and the quantity of that good that consumers are willing to buy. B. the price of a good and the quantity of that good that producers are willing to sell. C. the income of consumers and the quantity of a good that consumers are willing to buy. D. the income of consumers and the quantity of a good that producers are willing to sell.