Aggregate demand is the relationship between
A)the price level and nominal GDP.
B)real aggregate expenditure and real GDP.
C)the price level and the quantity of real GDP demanded.
D)real income and real GDP.
E)real prices and real GDP.

Question

Quizplus · Accepted Answer

Aggregate demand represents the relationship between the price level and the quantity of real GDP demanded in an economy. As the price level decreases, the quantity of real GDP demanded increases, ceteris paribus. This relationship is captured by the downward sloping aggregate demand curve.

Aggregate Demand Is the Relationship Between