Looking at the aggregate demand curve alone, one can tell ______ that will prevail in the economy.
A) the quantity of output and the price level
B) the quantity of output
C) the price level
D) neither the quantity of output nor the price level

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the overall price level and the quantity of goods and services demanded, but it does not determine the actual price level or output quantity, as these depend on the intersection with the aggregate supply curve.

Looking at the Aggregate Demand Curve Alone, One Can Tell