At each price level, the aggregate demand curve indicates
A) the nominal value of total production of goods and services domestic income that will be produced.
B) the total amount of real planned expenditures.
C) the nominal Gross Domestic Product (GDP) that will be produced.
D) the total amount of real Gross Domestic Product (GDP) that will be produced.

Question

Quizplus · Accepted Answer

The aggregate demand curve represents the total amount of real planned expenditures at each price level. It does not represent nominal values or actual production levels, but rather the level of demand for goods and services at each price point. Therefore, option B is the correct answer.

At Each Price Level, the Aggregate Demand Curve Indicates