The relationship between the price level and the quantity of aggregate output for which the goods and money markets are in equilibrium is called the ________.
A)IS curve
B)LM curve
C)aggregate demand curve
D)production function

Question

Quizplus · Accepted Answer

The relationship between the price level and the quantity of aggregate output for which the goods and money markets are in equilibrium is known as the aggregate demand curve. The IS curve describes equilibrium in the goods market, the LM curve describes equilibrium in the money market, and the production function describes the relationship between inputs and output in the production process.

The Relationship Between the Price Level and the Quantity of Aggregate