Week 2 Discussion 2 Discuss the reasons why the aggregate demand (AD) curve slopes downward. As defined by Amacher and Pate (2019) Aggregate demand is just that, the combined set of all goods and services produced in an economy and the average prices of those goods and services. The downward slope shows how people tend to buy more when the price is lower. So, when the price of an object is lower the consumer will purchase multiple. We tend to associate the price to whether something is a bargain. If the price is high, we will be reluctant to purchase more than one if we purchase at all. But if the price is lower and we feel that we are getting a bargain, people tend to purchase in quantity so as to stock up for future use.
What causes the AD curve and aggregate supply (AS)...