The shape of the aggregate demand curve does NOT tell us anything about how the total dollar value of spending will ultimately be divided between output and prices. For this we need
A) information about the standard of living in the country.
B) information that only the Consumers' Price Index can provide.
C) an aggregate supply curve.
D) to know how far from the origin the aggregate demand curve is.

Question

Quizplus · Accepted Answer

The aggregate supply curve helps us understand how changes in aggregate demand will impact both prices and output, therefore giving us information about how the total dollar value of spending will be divided between output and prices. The other choices are not relevant to this issue or do not provide the needed information.

The Shape of the Aggregate Demand Curve Does NOT Tell