quiz 7 Flashcards
1
Q
Why does AD slope down?
A
Increase in price level of outputs cause less consumption and demand
2
Q
The Wealth Effect: Consumption
A
As PL increases, savings and assets diminish in value
Why does AD slope down?
Increase in price level of outputs cause less consumption and demand
The Wealth Effect: Consumption
As PL increases, savings and assets diminish in value