The aggregate demand curve
A) shows total spending in which the economy will engage at alternative price levels.
B) implies an inverse relationship between inflation and unemployment.
C) is identical to the aggregate expenditures curve.
D) has the same slope as a demand curve.
E) relates relative prices to the quantity demanded of a particular good.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the total spending in the economy at alternative price levels. It represents the relationship between the overall price level (measured by the GDP deflator) and total spending in the economy (measured by real GDP).

The Aggregate Demand Curve