The aggregate demand curve shows how real GDP purchased varies with changes in:
A) unemployment.
B) output.
C) the price level.
D) the interest rate.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the price level and real GDP. As the price level increases, the amount of real GDP demanded decreases, and as the price level decreases, the amount of real GDP demanded increases. Therefore, changes in the price level are the primary determinant of movements along the aggregate demand curve.

The Aggregate Demand Curve Shows How Real GDP Purchased Varies