The downward slope of the aggregate demand curve shows that A) ...

[stevenposner]

The downward slope of the aggregate demand curve shows that
 
  A) a higher price level will cause planned purchase rates for final goods and services to be higher.
  B) an increase in aggregate demand reduces the long-run aggregate supply.
  C) a lower price level will cause planned purchase rates for final goods and services to be higher.
  D) an increase in aggregate demand increases the long-run aggregate supply.

Question 2

If the average propensity to consume is 0.8, then the average propensity to save is
 
  A) 0. B) 0.2. C) 0.8. D) 1.

[Loise Hard]

Answer to Question 1

C

Answer to Question 2

B