The aggregate demand curve shows the relationship between the price level and the level of planned aggregate expenditure in the economy.

Question

Quizplus · Accepted Answer

The aggregate demand curve illustrates how changes in price levels impact the total quantity of goods and services that buyers are willing and able to purchase. At lower price levels, consumers and firms are likely to purchase more goods and services due to their increased affordability, increasing the level of aggregate expenditure. As the curve slopes downward, it reflects the inverse relationship between price levels and planned aggregate expenditure.

The Aggregate Demand Curve Shows the Relationship Between the Price