Aggregate demand is the total quantity of output
A)Demanded if the economy is in equilibrium.
B)Demanded at alternative price levels in a given time period.
C)Producers are willing and able to supply at alternative price levels.
D)Consumers actually buy.

Question

Quizplus · Accepted Answer

Aggregate demand refers to the total quantity of goods and services that consumers, businesses, and the government are willing to buy at alternative price levels in a given time period. It is the combined demand of all actors in the economy and is a function of their willingness and ability to spend. Therefore, option B is the correct choice. Option A is incorrect because equilibrium refers to a specific price level and output level where the quantity demanded equals the quantity supplied. Option C is incorrect because it refers to aggregate supply, which is the total quantity of goods and services that producers are willing and able to supply at alternative price levels. Option D is incorrect because aggregate demand is a theoretical concept and does not directly measure the actual purchases made by consumers.

Aggregate Demand Is the Total Quantity of Output