What is the difference between aggregate demand (AD) and aggregate expenditures (AE)?
A) AD estimates the price levels that would exist at different spending levels, and AE estimates the production that would exist at different price levels.
B) AD estimates the production that would exist at different spending levels, and AE estimates the price levels that would exist at different spending levels.
C) AD estimates spending at different average price levels, and AE estimates spending at different income or real GDP levels.
D) AD estimates spending at different income or GDP levels, and AE estimates spending at different average price levels.

Question

Quizplus · Accepted Answer

AD represents the total amount of goods and services demanded in the economy at different price levels, while AE focuses on the total spending by different sectors of the economy at different levels of income or real GDP.

What Is the Difference Between Aggregate Demand (AD) and Aggregate