Economics (AS & A Level) · May / June 2023 · Paper 11 · Question 18
9708Aggregate Demand and Aggregate Supply analysis
Which statement explains why the aggregate demand curve is downward sloping?
- AAs prices fall, the demand for exports becomes more elastic.
- BAs prices fall, fewer goods are imported.
- CAs prices fall, the rate of interest will rise.
- DAs prices fall, real wealth rises and so spending increases.
As printed in the paper
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Correct answer: D. As prices fall, real wealth rises and so spending increases.
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