The ________ shows the relationship between the price level and quantity of real GDP demanded.
A)consumer price index
B)aggregate expenditure line
C)45-degree line
D)aggregate demand curve
E)consumption function

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the price level (on the vertical axis) and quantity of real GDP demanded (on the horizontal axis). It shows the level of real output that firms are willing to produce and sell at different price levels, based on factors such as consumer spending, investment, government spending, and net exports.

The ________ Shows the Relationship Between the Price Level and Quantity