By using only the aggregate demand curve, we can determine
A) only the price level.
B) only the quantity of real GDP.
C) both the price level and quantity of real GDP.
D) neither the price level nor the quantity of real GDP.

Question

Quizplus · Accepted Answer

The aggregate demand curve alone cannot determine the price level or the quantity of real GDP because it must intersect with the aggregate supply curve to establish equilibrium.

By Using Only the Aggregate Demand Curve, We Can Determine