The aggregate demand curve is downward sloping because the prices increases it leads to the decrease in the level of output.
<h3>What is Demand?</h3>
Demand refers to the desire and the willingness to purchase a commodity.The demand is generated by the need and want for the product which is begged by the purchasing power.
In The Demand Curve, the curve of the demand is downward sloping because as the demand rises for the certain product in the potential market it leads to shortage of the product.
Due to the shortage of the product the prices of the product raises which results in the decrease in the purchase. If the purchase of the product decreases then the producers will produce less quantity of the product.
Thus it overall leads to the decrease in the production of the output.
Learn more about Demand Curve here:
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