The aggregate demand curve illustrates the:
A) positive relationship between the price level and the quantity demanded of real gross domestic product (GDP).
B) positive relationship between the price level and the quantity demanded of nominal GDP.
C) inverse relationship between the price level and the quantity demanded of real GDP.
D) inverse relationship between the price level and the quantity demanded of nominal GDP.
E) positive relationship between the level of spending and the level of real GDP.

Question

Quizplus · Accepted Answer

The aggregate demand curve illustrates the inverse relationship between the price level and the quantity demanded of real GDP. As the price level increases, the quantity demanded decreases, and vice versa. The aggregate demand curve is downward sloping due to this inverse relationship.

The Aggregate Demand Curve Illustrates The