The aggregate demand curve slopes downward because the reason is interest rate effect.
In an economy, the total amount of demand for all finished goods and services is measured as aggregate demand. A measure of aggregate demand is the total amount of money spent on those goods and services at a particular price level and time.
The total demand for goods and services at any given price level over a specific period is referred to as aggregate demand in macroeconomics. Since the two metrics are calculated in the same way, aggregate demand over the long run equals gross domestic product (GDP). A country's gross domestic product (GDP) reflects all the goods and services that are produced there, whereas aggregate demand refers to consumer demand for those same goods.
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