Which of the following is true about how the aggregate demand curve differs from the individual's demand curve?
A) The individual's demand curve shows the relationship between price and quantity demanded while the aggregate demand curve is not influenced by price.
B) For the individual's demand curve equilibrium is determined by the intersection of supply and demand while for the aggregate demand curve equilibrium is determined by the real balance effect.
C) The individual's demand curve is just for an individual while the aggregate demand curve looks at the entire circular flow of income.
D) The individual's demand curve will shift when there is a change in taxes while the aggregate demand curve will not.
Correct Answer:
Verified
Q142: Suppose a country has no trade with
Q143: Which of the following is NOT true
Q145: Higher interest rates
A) reduce total planned real
Q148: What determines the total value of aggregate
Q149: The aggregate demand curve
A) is like individual
Q153: Holding nominal money balances constant, a decrease
Q154: The open economy effect refers to the
Q155: If the price level increases, then
A) the
Q157: Which of the following statements is true
Q170: The aggregate demand curve shows
A) a direct
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents