The aggregate demand curve: January 1, 2023 by admin is upward sloping because a higher price level is necessary to make production profitable as production costs rise. is downward sloping because production costs decline as real output increases? shows the amount of expenditures required to induce the production of each possible level of real output. shows the amount of real output which will be purchased at each possible price level. See Answer shows the amount of real output which will be purchased at each possible price level.