The aggregate demand curve
A) represents the relationship between prices and quantities of all goods produced in an economy
B) is derived from equilibrium conditions in the labor and money markets
C) gives the equilibrium level of real GDP corresponding to a given price level
D) is the sum of an economy's individual demand curves
E) plots the interest rate as a function of output

Question

Quizplus · Accepted Answer

The aggregate demand curve represents the relationship between the overall price level and the quantity of real GDP demanded in the economy. It gives the equilibrium level of real GDP corresponding to a given price level. Choices A, B, D, and E do not accurately describe the aggregate demand curve.

The Aggregate Demand Curve