The aggregate demand curve or schedule shows the relationship between the total demand for output and the
A) income level.
B) interest rate.
C) price level.
D) real GDP.

Question

Quizplus · Accepted Answer

The aggregate demand curve/schedule shows the relationship between the total demand for output and the price level. As the price level decreases, there will be an increase in the demand for output because consumers and businesses will be able to purchase more goods and services with their income and savings. Similarly, as the price level increases, the demand for output will decrease because consumers and businesses will have less purchasing power.

The Aggregate Demand Curve or Schedule Shows the Relationship Between