The dynamic aggregate demand curve illustrates the _____ relationship between the quantity of output in the short run and _____.
A)positive; inflation
B)positive; the price level
C)negative; inflation
D)negative; the price level

Question

Quizplus · Accepted Answer

The dynamic aggregate demand curve shows a negative relationship between the quantity of output in the short run and inflation, as higher inflation typically leads to lower real output demanded.

The Dynamic Aggregate Demand Curve Illustrates the _____ Relationship Between