A graphical representation of the relationship between the total quantity of goods and services demanded and the price level is the:
A) aggregate demand curve.
B) average price level.
C) circular-flow model.
D) GDP curve.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the inverse relationship between the price level and the total quantity of goods and services demanded in an economy. As the price level increases, the quantity demanded generally decreases, and vice versa. The other options listed are not directly related to this relationship.

A Graphical Representation of the Relationship Between the Total Quantity