Respuesta :
The first cause for the downward slope of the aggregate call for the curve is Pigou's wealth effect. Don't forget that the nominal value of cash is constant, but the real fee is dependent upon the charge degree. this is due to the fact, that for a given sum of money, a lower charge degree gives extra buying power according to a unit of currency.
The aggregate demand (ad) curve slopes downward due to the fact that output decreases as the fee stage increases. increases or decreases in self-sustaining spending components can shift the advert curve. Through coverage changes, the government can also shift the ad curve.
An increase in wealth will induce humans to increase their consumption. The consumption thing of aggregate demand will as a consequence be greater at decreased price degrees than at better price levels.
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