Any point along the aggregate demand curve represents

Question

Quizplus · Accepted Answer

Any point along the aggregate demand curve represents a possible equilibrium combination of real GDP and inflation, where real GDP is the output produced by an economy and inflation is the overall increase in the price level of goods and services over time. It does not necessarily represent potential GDP, which is the maximum output an economy can produce with its existing resources and technology.

Any Point Along the Aggregate Demand Curve Represents