The aggregate-demand curve shows the combinations of_____and____that are consistent with equilibrium in the market for goods and services and the market for money.
A)the price level; output
B)the price level; the real interest rate
C)the real interest rate; the money supply
D)the money supply; output and

Question

The aggregate-demand curve shows the combinations of_____and____that are consistent with equilibrium in the market for goods and services and the market for money.
A)the price level; output 
B)the price level; the real interest rate
C)the real interest rate; the money supply
D)the money supply; output and

Quizplus · Accepted Answer

The aggregate-demand curve shows the combinations of the price level and output that are consistent with equilibrium in both the market for goods and services and the market for money. This reflects how, at different price levels, the quantity of goods and services demanded in the economy can vary, taking into account both consumption and investment decisions.

The Aggregate-Demand Curve Shows the Combinations Of_____and____that Are Consistent with Equilibrium

The Aggregate-Demand Curve Shows the Combinations Of_andthat Are Consistent with Equilibrium