Many workers leave to pursue more lucrative careers in foreign economies. for environmental and safety reasons, the government requires that the country's nuclear power plants be permanently shut down. an investment tax credit increases the rate at which firms acquire machinery and equipment.

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.