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.
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