The aggregate demand curve displays
A) real GDP demanded at various price levels.
B) nominal GDP versus real GDP.
C) GDP demanded at various investment levels.
D) the business cycle.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the total real GDP demanded at various price levels. It is a graphical representation of the relationship between the overall level of prices in the economy and the quantity of output that firms will supply. The AD curve shows the quantity of goods and services that households, firms, and the government are willing to purchase at each price level.

The Aggregate Demand Curve Displays