The aggregate demand curve
A) is like individual demand curves in that prices of other goods are held constant.
B) is like individual demand curves in that income is constant.
C) differs from individual demand curves in that the aggregate demand curve is not downward sloping.
D) differs from individual demand curves in that the aggregate demand curve looks at the entire circular flow of income and product while the individual demand curve looks at only one good.

Question

Quizplus · Accepted Answer

The aggregate demand curve is different from individual demand curves in that it looks at the entire circular flow of income and product, while individual demand curves look at only one good. The aggregate demand curve also takes into consideration all goods and services produced in the economy, whereas individual demand curves only consider demand for a specific good or service. Additionally, the aggregate demand curve is downward sloping, unlike individual demand curves which may or may not be downward sloping. Therefore, options A, B, and C are incorrect.

The Aggregate Demand Curve