Why demand curve slopes downward from left to right and its exception?
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There are three basic reasons for the downward sloping aggregate demand curve. These are Pigou's wealth effect, Keynes's interest-rate effect, and Mundell-Fleming's exchange-rate effect. These three reasons for the downward sloping aggregate demand curve are distinct, yet they work together.
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he demand curve always slopes downwards from left to right. This is due to the fact that demand increases when price falls and decreases when price rises. There are several causes for the downward slope of the demand curve.
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