The AD curve relates the price level to which of the following?
A)desired aggregate expenditure
B)desired consumption
C)the level of real GDP where desired AE equals actual national income
D)the level of nominal GDP where desired AE equals actual national income
E)equilibrium savings and wealth.

Question

Quizplus · Accepted Answer

The AD curve relates the price level to the level of real GDP where desired aggregate expenditure (AE) equals actual national income. As the price level changes, the level of real GDP changes in response to changes in desired AE, resulting in movement along the AD curve.

The AD Curve Relates the Price Level to Which of the Following