The aggregate demand curve:
A)shows the relationship between the overall price level and the level of total demand.
B)shows the price level on the vertical axis and output on the horizontal axis.
C)slopes downward.
D)All of these are true.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the overall price level and the level of total demand, with price level on the vertical axis and output on the horizontal axis. Moreover, it slopes downward, indicating an inverse relationship between the price level and the level of total demand.

The Aggregate Demand Curve