To construct an aggregate demand curve,one must assume that
A) the quantity of money is fixed.
B) the price level is fixed.
C) interest rates are fixed.
D) real output is fixed.
E) aggregate supply is fixed.

Question

Quizplus · Accepted Answer

The aggregate demand curve is constructed under the assumption that the quantity of money in the economy is fixed. This allows for the observation of how changes in the price level affect the quantity of goods and services demanded, holding the money supply constant.

To Construct an Aggregate Demand Curve,one Must Assume That