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.
Answer & explanation
Correct answer: option 2
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.