The shape of the aggregate demand curve does not tell us anything about how the total dollar value of spending will ultimately be divided between output and prices. For this we need
A)information about the standard of living in the country.
B)information that only the Consumers' Price Index can provide.
C)an aggregate supply curve.
D)to know how far from the origin the aggregate demand curve is.

Question

Quizplus · Accepted Answer

The aggregate supply curve is necessary to determine how the total dollar value of spending will ultimately be divided between output and prices. The shape of the aggregate demand curve only gives information about the relationship between price levels and quantity demanded. The other choices are not relevant to this issue.

The Shape of the Aggregate Demand Curve Does Not Tell