The essential noticeable function for the aggregate need curve is it is downward sloping, as noticed in.

The Aggregate Demand Curve

Downward sloping demand curve that is aggregate

You can find a true quantity of grounds for this relationship. Recall that a downward sloping aggregate need curve implies that once the price degree falls, the number of production demanded increases. Likewise, while the price degree falls, the income that is national. You can find three fundamental cause of the downward sloping aggregate demand bend. They are Pigou’s wide range impact, Keynes’s interest-rate impact, and Mundell-Fleming’s exchange-rate effect.