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The aggregate demand curve is downward sloping because as the price level increases the purchasing power of wealth decreases purchasing power of wealth decreases A demand for imports decreases demand for imports decreases B demand for interest-sensitive expenditures increases demand for interest-sensitive expenditures increases C demand for domestically produced substitute goods increases demand for domestically produced substitute goods increases D real value of fixed assets increases

Respuesta :

Answer:

A

Explanation:

The aggregate demand curve is a graph that represents the  total quantity of all goods and services demanded by the economy at different price levels.

The aggregate demand curve slopes downward because

  • wealth effect on consumption
  • the interest rate effect on investment
  • the international trade effect on net exports.

If price level decreases, wealth decreases. As a result, import becomes more expensive and export decreases. This leads to a downward slope of the demand curve

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