The aggregate demand $($AD$)$ curve presented in class is downward sloping because:

Group of answer choices

A reduction in the aggregate price level $($P$)$ will cause a reduction in the interest rate and an increase in output

A reduction in the money supply $($M$)$ will cause an increase in the interest rate, a reduction in investment and a reduction in output

As P increases, goods and services become relatively more expensive and individuals respond by reducing the quantity demanded of goods and service

A reduction in P will cause an increase in the real wage, a reduction in employment, and a reduction in output