One reason that the aggregate demand curve has a negative slope is because
A) firms supply more when prices rise.
B) people buy more foreign goods when the domestic price level rises.
C) the amount of money in the economy increases when the price level rises.
D) firms supply less when prices rise.
B
You might also like to view...
Did Mother Teresa create negative externalities when she helped the poor of Calcutta?
A) Yes, if her activities unintentionally imposed costs on others, such as upsetting people who don't believe in charity for the poor. B) No, because she strove only to do good, not bad. C) No, because her activities were accomplished in a state of grace. D) No, because her activities were altruistic. E) B, C, D, are all correct.
Which of these is an example of depreciation?
(A) A clothing store owner reduces the price of a belt by $10 to encourage sales. (B) A worker's truck breaks down more often after 80,000 miles of driving. (C) An employer fires a worker for repeatedly arriving late to work. (D) A share of stock declines in value over several months.