Is this a good explanation of the shape of the ad curve

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1. Why might investment not respond positively to low interest rates during a recession? Why might investment not respond negatively to high interest rates during a boom?

2. The aggregate demand curve slopes downward because when the price level is lower, people can afford to buy more and aggregate demand rises. When prices rise, people can afford to buy less and aggregate demand falls. Is this a good explanation of the shape of the AD curve? Why or why not?

Reference no: EM131308986

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