Aggregate demand refers to the relationship between
A) prices and the quantity of a good supplied.
B) the price level and aggregate output demanded.
C) prices and the quantity of a good demanded.
D) the price level and aggregate output supplied.

Question

Quizplus · Accepted Answer

Aggregate demand refers to the relationship between the overall price level in an economy and the total quantity of goods and services demanded by all households, businesses, and governments. Therefore, the best choice is B, as it directly relates to the concept of aggregate demand. The other options refer to the relationship between prices and quantity demanded or supplied for a specific good, which is not the same as aggregate demand.

Aggregate Demand Refers to the Relationship Between