Which of the following effects best explains the downward slope of the aggregate demand curve? A. A multiplier effect B. An expectations effect C. A substitution effect D. An interest-rate effect
The aggregate demand is the total demand for all the final goods and all the services in the economy at a given point of time and is plotted with the outputs and a downward sloping curve means that the price level drops and the quantity of the demand increase and similarly there is a drop in the price levels.
