The aggregate demand curve:
A) shows the relationship between the overall price level and the level of total demand.
B) shows the price level on the horizontal axis and output on the vertical axis.
C) is upward-sloping, which is counter to the individual demand curve.
D) shows the relationship between the price of goods and services and the level of totaldemand.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the overall price level and the level of total demand in the economy. It is a downward-sloping curve, meaning that as the price level decreases, the level of total demand for goods and services increases. This is different from an individual demand curve, which is upward-sloping.

The Aggregate Demand Curve