quiz 7 Flashcards

1
Q

Why does AD slope down?

A

Increase in price level of outputs cause less consumption and demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The Wealth Effect: Consumption

A

As PL increases, savings and assets diminish in value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly