Which of the following is an accurate description of the aggregate demand curve?
A) It is the sum of all individual demand curves for all products
B) It shows all price levels at which firms' unit costs equal their percent markups.
C) It is the curve decided upon by the voters.
D) It shows the relationship between firms' unit costs and their percentage markups.
E) It shows the equilibrium level of GDP associated with price level.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the price level and the equilibrium level of GDP in the economy. It represents the total demand for all goods and services in the economy at different price levels. The curve is downward sloping, indicating that as the price level increases, the demand for goods and services decreases, resulting in a lower level of GDP.

Which of the Following Is an Accurate Description of the Aggregate