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guapka [62]
2 years ago
5

The aggregate demand curve is negatively sloped due to: a the elasticity effect of an aggregate price level change b the fiscal

policy effect c the substitution effect of the aggregate price level change d the wealth effect of an aggregate price level change
Business
1 answer:
balandron [24]2 years ago
5 0

Answer:

d. the wealth effect of an aggregate price level change

Explanation:

The aggregate demand curve is negatively sloped due to <u>the wealth effect of an aggregate price level change</u>. The reason is that rise in the aggregate price decreases the purchasing power of the individual and thus, decreases in aggregate demand increases the purchasing power of the individual.

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Answer:

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