At each price level,the aggregate demand curve indicates
A)the nominal domestic income that will be produced.
B)the total amount of real domestic income that will be purchased.
C)the nominal domestic output that will be produced.
D)the total amount of real domestic output that will be produced.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the total amount of real domestic income (or output) that will be purchased at each price level. It does not necessarily indicate the nominal domestic income or output that will be produced, as this depends on a variety of other factors such as production costs and supply conditions.

At Each Price Level,the Aggregate Demand Curve Indicates