The curve that displays total planned real spending on goods and services at each price level by households, businesses, the government, and foreign residents is called
A) the aggregate supply curve.
B) the aggregate demand curve.
C) the price level curve.
D) the employment curve.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the price level and total planned real spending on goods and services by households, businesses, the government, and foreign residents. Therefore, option B is the correct answer. Option A refers to the curve displaying the relationship between the price level and total output supplied by firms in an economy. Option C and D are not relevant in this context.

The Curve That Displays Total Planned Real Spending on Goods