The aggregate demand curve shows the
A) total amount of planned expenditures on goods and services at each possible price level.
B) total amount of nominal goods that the participants in the economy want to purchase.
C) total amount of real goods that foreigners want to purchase.
D) amount of goods producers will produce as production costs fall.

Question

Quizplus · Accepted Answer

The aggregate demand curve represents the total planned expenditures on goods and services at each possible price level. It shows the relationship between the overall price level and the total quantity of goods and services demanded in an economy. This includes the demand for consumer goods, investment goods, government goods, and net exports. The AD curve slopes downward because at higher prices, consumers and businesses will demand less, due to reduced purchasing power.

The Aggregate Demand Curve Shows the