Asked by Maryana Bilska on May 06, 2024
Verified
The aggregate demand curve for an economy depicts the:
A) quantity of goods and services demanded during a given time period at different interest rates,other things held constant.
B) quantity of goods and services demanded at different price levels during different time periods,other things held constant.
C) quantity of goods and services demanded at different price levels during a given time period,other things held constant.
D) quantity of goods and services that the economy is capable of producing during a given time period,other things held constant.
E) final quantity of goods and services actually produced by the economy during a given time period,other things held constant.
Aggregate Demand Curve
A graphical representation showing the total demand for goods and services within a particular economy at different price levels.
Goods and Services
The output of an economy that includes both physical products and intangible activities offered for consumption.
- Comprehend the development and consequences of the aggregate demand and aggregate supply curves.
Verified Answer
ME
Merieme EljoundiMay 09, 2024
Final Answer :
C
Explanation :
The aggregate demand curve represents the total quantity of goods and services demanded at different price levels during a given time period, holding all other variables constant. It shows the total spending in an economy at different price levels. Interest rates are not directly incorporated into the aggregate demand curve. Option A is incorrect as it includes interest rates. Option B is incorrect as it implies that demand changes over time, which is not represented by the aggregate demand curve. Option D relates to the aggregate supply curve, not aggregate demand. Option E is incorrect as it refers to actual production, not demand.
Learning Objectives
- Comprehend the development and consequences of the aggregate demand and aggregate supply curves.