Aggregate demand is defined as
A) the demand for goods and services generated by all sectors in the economy, holding price level constant.
B) the relationship between the total quantity of goods and services demanded and the price level, all other determinants of spending unchanged.
C) the relationship between the total quantity of goods and services demanded and the supply of factors of production, all other determinants of production unchanged.
D) the relationship between the total quantity of goods and services demanded and the income level, all other determinants of spending unchanged.

Question

Quizplus · Accepted Answer

Aggregate demand is the total amount of goods and services that consumers, businesses, the government, and foreigners are willing to buy at a given price level. Choice B correctly defines the relationship between the quantity demanded and the price level, while the other choices are either incomplete or incorrect.

Aggregate Demand Is Defined as