Question

Which of the following help to explain why the aggregate demand curve slopes downward? 

Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. 

When the domestic price level rises, our goods and services become more expensive to foreigners 

When government spending rises, the price level falls 

There is an inverse relationship between consumer expectations and personal taxes 

When the price level rises, the real value of financial assets (like stocks, bonds, and savings account balances declines.

Which of the following will shift the aggregate demand curve to the left? 

Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers 

The government raises corporate profit taxes. 

There is an economic boom overseas that raises the incomes of foreign households 

The government reduces personal income taxes 

Interest rates rise.

Answer 1

Which of the following help to explain why the aggregate demand curve slopes downward?

Correct Statements:

When the domestic price level rises, our goods and services become more expensive to foreigners.

When the price level rises, the real value of financial assets (like stocks, bonds and savings account balance) declines

Which of the following will shift the aggregate demand curve to the left?

Correct Statements:

The government raises corporate profit taxes.

Interest rates rise.