Which of the following is affected by changes in aggregate demand?

Question

Quizplus · Accepted Answer

Changes in aggregate demand affect prices, employment, and total output. If there is an increase in aggregate demand, businesses will need to increase production, which leads to an increase in employment. As more workers are hired, demand for goods and services increases, which further drives up prices. Conversely, a decrease in aggregate demand reduces production and employment, leading to lower prices. Thus, changes in aggregate demand affect all three variables.

Which of the Following Is Affected by Changes in Aggregate