A single aggregate demand curve records how IS-LM equilibrium output changes as ________ changes.
A)the IS curve
B)the nominal money supply
C)government expenditure
D)the price level

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the level of output (Y) and the price level (P). As the price level changes, there is a movement along the aggregate demand curve, reflecting the impact on real output. Changes in the other variables listed may shift the aggregate demand curve, but they do not represent a movement along the curve.

A Single Aggregate Demand Curve Records How IS-LM Equilibrium Output