Question

Which of the following are reasons that the aggregate demand curve slopes downward? Check all that apply. As the price level rises, households' real income increases. As the price level rises, imports become relatively cheaper than domestically produced goods. As the price level rises, households' real wealth decreases.

Answer 1

Answer:

As the price level rises, imports become relatively cheaper than domestically produced goods.

Explanation:

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

As price level increases,  the cost of domestic goods increases and imports become cheaper. As a result, the demand for domestic goods falls as price level falls and the demand for imported goods increases.