Aggregate demand:
A) Refers to the collective behavior of all buyers.
B) Reflects the total quantity of output produced.
C) Increases when the price level increases.
D) Is influenced directly by aggregate supply.

Question

Quizplus · Accepted Answer

Aggregate demand refers to the total amount of goods and services that all buyers in an economy are willing and able to purchase at a given price level. It reflects the collective behavior of all buyers, including consumers, businesses, and the government. It is not directly influenced by aggregate supply, as it is a separate concept that focuses on the demand side of the economy.

Aggregate Demand