The aggregate demand curve shows the relationship between the ________ and ________.
A)inflation rate; quantity of real GDP demanded
B)real interest rate; quantity of real GDP supplied
C)nominal interest rate; quantity of real GDP demanded
D)price level; quantity of real GDP demanded
E)inflation rate; unemployment

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the price level (a measure of inflation) and the quantity of real GDP demanded by households, businesses, and governments. Essentially, it illustrates how changes in the overall level of prices affect the amount of goods and services people are willing and able to purchase at any given time.

The Aggregate Demand Curve Shows the Relationship Between the ________