What variable is changed to derive an aggregate demand curve from the expenditures equilibrium diagram?
A)Real output.
B)National income.
C)The price level.
D)The interest rate.
E)Autonomous expenditures.

Question

Quizplus · Accepted Answer

To derive the aggregate demand curve from the expenditures equilibrium diagram, the price level is changed. The aggregate demand curve shows the relationship between the price level and the quantity of real output demanded in the economy. As the price level changes, the level of planned expenditures in the economy also changes, leading to a movement along the aggregate demand curve.

What Variable Is Changed to Derive an Aggregate Demand Curve