The aggregate demand curve differs from an individual's demand curve in that
A)the aggregate demand curve may not slope down while an individual demand curve must always slope down.
B)the aggregate demand curve looks at the entire circular flow of income and product,while an individual demand curve looks at one good,holding everything else constant.
C)prices change along an individual demand curve but prices are held constant along an aggregate demand curve.
D)the aggregate demand curve slopes up while an individual demand curve slopes down.

Question

Quizplus · Accepted Answer

The aggregate demand curve looks at the overall demand in the economy for all goods and services, taking into account factors such as consumer spending, investment, government spending, and net exports. On the other hand, an individual demand curve focuses only on the quantity of a specific good or service that an individual is willing to purchase at different prices, holding everything else constant. Therefore, choice B is the correct answer. Choices A, C, and D are incorrect because they do not accurately differentiate between the two types of demand curves.

The Aggregate Demand Curve Differs from an Individual's Demand Curve