The aggregate demand curve illustrates the relationship between
A)the aggregate demand for goods and services, and the real interest rate.
B)the aggregate demand for goods and services, and the level of current output.
C)the level of current output and the real interest rate.
D)the aggregate demand for goods and services, and the aggregate price level.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the aggregate demand for goods and services and the aggregate price level. It illustrates the quantity of goods and services that households, firms, and governments are willing to purchase at different price levels. Therefore, D is the best answer.

The Aggregate Demand Curve Illustrates the Relationship Between