Which of the follow is not a property of the aggregate demand curve?
A) It shows the relationship between the overall price level and the level of total demand.
B) It shows the price level on the vertical axis and output on the horizontal axis.
C) The aggregate demand curve slopes downward.
D) It shows the relationship between the overall price level and level consumption.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the overall price level and the level of total demand, with price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward, indicating that as the price level increases, the level of total demand decreases. However, it does not show the relationship between the overall price level and level of consumption specifically, as it includes all components of demand such as investment, government spending, and net exports.

Which of the Follow Is Not a Property of the Aggregate