True or False - 1 TrueorFalse: True!False...

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1. True or False: The aggregate demand curve is downward sloping for the same reason that the  demand curve for a single good is downward sloping. True !False The law of demand is the key to analyzing the demand for a single good. That is, the price of the good  determines a consumer's tendency to buy more when the price is relatively low and buy less when the  price is relatively high. For this reason, price and quantity demanded for a single good have an inverse  relationship, and the demand curve for a single good is downward sloping.  The aggregate demand curve indicates the inverse relationship between the economy's overall price level  and the quantity of domestically produced goods and services. It is an inverse relationship for three  reasons: the real wealth effect, the interest rate effect, and the open economy effect.  The real wealth effect says that as the price level declines, consumers' purchasing power rises. 
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