Rico Corporation currently owns two parcels of land (parcel A and parcel B). It owns a warehouse facility on parcel A. Rico needs to acquire a new and larger manufacturing facility. Rico was approached by Build It Up Buttercup Construction (who specializes in prefabricated warehouses) about acquiring Rico’s existing warehouse on parcel A. Rico indicated that it prefers to exchange its e

Which of the statements best describes why the aggregate demand curve is downward sloping? an increase in the aggregate price level causes consumer and investment spending to fall, because consumer purchasing power decreases and money demand increases. as the aggregate price level increases, consumer expectations about the future change. as the aggregate price level decreases, the stock of existing physical capital increases. as a good's price increases, holding all else constant, the good's quantity demanded decreases.