Business, 21.12.2019 06:31, Bra1nPowers

Which of the following is a correct explanation for why the aggregate demand curve slopes downward? a. as the price level decreasesdecreases, consumers substitute moremore expensive goods for lessless expensive choices. b. as the price level decreasesdecreases, the labor force increasesincreases. c. as the price level decreasesdecreases, the real value of cash balances increasesincreases, and total expenditures riserise. d. as the price level decreasesdecreases, exports become moremore expensive overseas and imports become relatively lessless expensive domestically, and thus net exports riserise.

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C. As the price level decreasesdecreases, the real value of cash balances increasesincreases, and total expenditures riserise.

Explanation:

The aggregate demand curve is a curve that shows all the output demanded at different price levels in an economy.

The aggregate demand curve in downward sloping. This is according to the law of demand which says, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Therefore, when prices fall, the real value of cash balances increases, total expenditures rises and quantity demanded rises.

When prices fall, export increases and net export rises.

I hope my answer helps you

Which of the following is a correct explanation for why the aggregate demand curve slopes downward?

answered: Guest

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

answered: Guest

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7. customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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Which of the following is a correct explanation for why the aggregate demand curve slopes downward?...