A-LevelEconomicsThe macroeconomy9708/12 · May/June 2025 · Q181 Mark
The aggregate demand curve is typically downward sloping. What is one possible explanation for this?
Afall in the price level will lead to a rise in demand for imports.
BAs the price level falls, improved productivity will reduce unit costs.
CIf the price level is high, any interest rate changes will encourage consumption.
DThe real value of assets increases as the price level falls.
✓ Correct answer
D: The real value of assets increases as the price level falls.
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