The aggregate demand (AD) curve is the relationship between the quantity of real GDP that macroeconomic players plan to demand and the
A) quantity of real GDP supplied.
B) exchange rate.
C) inflation rate.
D) unemployment rate.
E) price level.

Question

Quizplus · Accepted Answer

The AD curve shows the relationship between the quantity of real GDP that households, firms, and the government plan to demand, and the price level. In other words, the AD curve shows the amount of real GDP that will be demanded at different price levels. Therefore, the correct answer is E, price level.

The Aggregate Demand (AD) Curve Is the Relationship Between the Quantity