The aggregate demand curve shows
A) the quantity of real GDP demanded at different price levels.
B) that real income is directly positively) related to the price level.
C) total expenditures at different levels of national income.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the quantity of real GDP (output) demanded at different price levels. It is a graphical representation of the relationship between price levels and the total quantity of goods and services demanded in an economy at a particular time. It is not directly related to real income or total expenditures, although these factors may influence the level of aggregate demand in the economy.

The Aggregate Demand Curve Shows