The level of real national output purchased at each price level is called a(n)
A) market basket.
B) market demand curve.
C) aggregate demand curve.
D) derived demand curve.
E) consumption possibilities curve.

Question

Quizplus · Accepted Answer

The level of real national output purchased at each price level is represented by the aggregate demand curve, which shows the total spending in the economy at different price levels. A market basket refers to a specific set of goods and services used to calculate inflation, while a market demand curve shows the relationship between the quantity demanded of a good and its price. A derived demand curve reflects the relationship between the demand for one good and the demand for another good that it is used to produce, and a consumption possibilities curve shows the various combinations of two goods that can be produced with a given set of resources.

The Level of Real National Output Purchased at Each Price