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Multiple Choice QuestionThe aggregate demand curve slopes downward because it reflects:Multiple choice question.a direct relationship between the price level and the amount of of real output demandedan inverse relationship between the price level and the amount of real output demanded

Question

Multiple Choice QuestionThe aggregate demand curve slopes downward because it reflects:Multiple choice question.a direct relationship between the price level and the amount of of real output demandedan inverse relationship between the price level and the amount of real output demanded

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Solution

The aggregate demand curve slopes downward because it reflects:

b. an inverse relationship between the price level and the amount of real output demanded

This means that as the price level decreases, the quantity of real output demanded increases, and vice versa. This is why the aggregate demand curve is downward sloping.

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