A 1-in.-larger rim diameter and 1-in.-wider rim width is a Plus 1 size upgrade; in this case, the 16-in. rim below. Plus 2 and 3 are shown, slightly exaggerated, on the 17- and 18-in. wheels. Choose a tire that's close to stock height.
(Technically, in the context of aggregate demand, the Y on the horizontal axis represents aggregate expenditure .) As it turns out, the aggregate demand curve also slopes downwards, giving a similar negative relationship between price and quantity that exists with the demand curve for a single good.
Difficulty: E Type: D. Explain how aggregate quantity-demanded falls when the price level increases and the impact this has on interest rates and aggregate output. Aggregate quantity-demanded falls when the price level increases because the higher price level causes the demand for money to rise.With the money supply constant, the interest rate will rise to reestablish equilibrium in the money market. It is the higher interest rate that causes aggregate output to fall.t is a graph that shows the relationship between the aggregate quantity of output supplied by all firms in an economy and the overall price level. Difficulty: E Type: D. Explain why the aggregate supply curve is not a market supply curve.