Aggregate Demand Is Defined as

question 45

Multiple Choice

Aggregate demand is defined as

• A) the demand for goods and services generated by all sectors in the economy, holding price level constant.
• B) the relationship between the total quantity of goods and services demanded and the price level, all other determinants of spending unchanged.
• C) the relationship between the total quantity of goods and services demanded and the supply of factors of production, all other determinants of production unchanged.
• D) the relationship between the total quantity of goods and services demanded and the income level, all other determinants of spending unchanged.

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Definitions:

Political

Relating to the government, public affairs, or the administration of public policy.

Trade War

A situation in which countries try to damage each other’s trade, typically by the imposition of tariff and quota restrictions.

Tariffs

Taxes imposed by a government on goods and services imported from other countries.

Quotas

Set limits or targets, usually pertaining to sales, production, or imports and exports, that a company or government aims to achieve.