Economics Homework Help

The aggregate demand curve has its particular shape because of which of the

following  

explanations?

Select one:

a. An increase in the money supply will cause an increase in the interest rate, a decrease in  

investment, and a decrease in output.

b. A decrease in the aggregate price level will cause a decrease in the interest rate and an increase in output.

c. An increase in the aggregate price level prompts the government to decrease government spending in the hope of bringing down prices.

d. As the aggregate price level increases, goods and services become relatively more expensive and individuals respond by decreasing the quantity demanded of goods and services.

e. A decrease in the aggregate price level will cause an increase in the real wage, a decrease in employment, and a decrease in output.