The aggregate demand curve shows the relationship between inflation the price level the money supply interest rates and production output demanded investment consumption. The aggregate demand curve is downward sloping because
a. an increase in the price level reduces real money holdings, which reduces the amount of expenditures.
b. a decrease in government spending reduces prices and makes consumption demand increase.
c. an increase in the price of a good causes a decrease in market demand for that good.
d. as income increases it causes an increase in the amount of planned expenditures.
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