The dynamic aggregate demand curve illustrates that the relationship between inflation and real output is:
A)Direct
B)Inverse
C)Independent
D)Undefined

Question

Quizplus · Accepted Answer

The dynamic aggregate demand curve shows an inverse relationship between inflation and real output. As inflation increases, aggregate demand decreases, resulting in a decrease in real output. Conversely, as inflation decreases, aggregate demand increases, resulting in an increase in real output.

The Dynamic Aggregate Demand Curve Illustrates That the Relationship Between