English, asked by kailashyadavky785226, 5 months ago

what are the economic reasons for downward sloping aggegate demand curve

Answers

Answered by stalecookies

Answer:

Explanation:

It slopes downward because of the wealth effect on consumption, the interest rate effect on investment, and the international trade effect on net exports. The aggregate demand curve shifts when the quantity of real GDP demanded at each price level changes.

Answered by haifafaseelamp

Explanation:

The aggregate demand (AD) curve slopes downward because output decreases as the price level increases. Increases or decreases in autonomous spending components can shift the AD curve. Through policy changes, the government can also shift the AD curve.

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