The aggregate demand curve shows
A) total expenditures at different levels of national income.
B) the quantity of real GDP demanded at different price levels.
C) that real income is directly (positively) related to the price level.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The aggregate demand curve represents the total quantity of all goods and services demanded by the economy at different price levels. It shows the inverse relationship between the price level and the quantity of real GDP demanded, not the relationship with national income or a direct relationship with the price level.

The Aggregate Demand Curve Shows