The aggregate demand curve:
A)shows the level of real GDP purchased in the economy at different possible price levels during a period of time.
B)shows the level of real GDP produced in the economy at different possible price levels during a period of time.
C)shifts to the left whenever there is an increase in aggregate expenditures.
D)slopes upward and shifts to the left whenever there is an increase in aggregate expenditures.

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the level of real GDP purchased in the economy at different possible price levels during a period of time. It is downward sloping, meaning that as price levels increase, the quantity of real GDP demanded decreases. It can shift due to changes in factors such as consumer spending, investment, government spending, and exports.

The Aggregate Demand Curve