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Which of the following involves a downward movement along the aggregate demand curve?

Choose one or more:

A. a decrease in capital productivity
B. a decrease in the country's wealth level
C. a decrease in the price level
D. expectations of lower future price levels
E. an increase in the price level
F. expectations of higher future price levels
G. an increase in the country's wealth level



Answer :

GinnyAnswer

Final answer:

The downward slope of the aggregate demand curve is due to the wealth effect, interest rate effect, and foreign price effect.


Explanation:

The downward slope of the aggregate demand curve is influenced by various factors:

  • Wealth effect: Higher price levels reduce real wealth, leading to a decrease in consumer spending.
  • Interest rate effect: Rising prices increase the demand for money, raising interest rates and reducing investment.
  • Foreign price effect: Higher price levels make domestic goods pricier, dampening exports.

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