Practicing Success
Which of the following statements is true? Statement 1- The Aggregate demand curve has a negative slope. Statement 2- There is a positive relation between aggregate demand and rise in the income level. |
Only statement 1 is true Only statement 2 is true Both statement 1 and statement 2 are true Neither statement 1 nor statement 2 is true |
Only statement 2 is true |
Aggregate demand refers to sum total of demand for all goods and services in an economy during the period of an accounting year. There is a positive relation between income and aggregate demand. The curve has a positive slope which indicates the relation between the two. |