The aggregate demand curve:
A) shows the level of real GDP purchased in the economy at different possible price levels during a period of time.
B) shows the level of real GDP produced in the economy at different possible price levels during a period of time.
C) shifts to the left whenever there is an increase in aggregate expenditures.
D) slopes upward.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the level of real GDP purchased in the economy at different possible price levels during a period of time. It is a downward-sloping curve, indicating that as the price level decreases, the quantity of real GDP demanded increases, ceteris paribus. The curve can shift to the left or right in response to changes in factors such as government spending, exports, and consumption.

The Aggregate Demand Curve