The aggregate demand curve shows the relationship between the aggregate price level and (the) aggregate:
A) productivity.
B) unemployment rate.
C) quantity of output demanded by households, businesses, the government, and the rest of the world.
D) quantity of output demanded by businesses only.

Question

Quizplus · Accepted Answer

The aggregate demand curve represents the total quantity of output demanded by households, businesses, the government, and the rest of the world at different price levels. Therefore, choice C is the correct option. Choices A and B are incorrect because they do not represent the total quantity of output demanded, and choice D is incorrect because it only represents the quantity of output demanded by businesses.

The Aggregate Demand Curve Shows the Relationship Between the Aggregate