What Is the Difference Between a Change in Aggregate Demand

question 50

Multiple Choice

What is the difference between a change in aggregate demand and a change in aggregate quantity of real GDP demanded?

• A) A change in aggregate demand is represented by a movement along the aggregate demand curve in response to a price change while a change in aggregate quantity of real GDP demanded is represented by a shift of the aggregate supply curve in response to a change in a component of aggregate demand.
• B) A change in aggregate demand is represented by a shift of the aggregate demand curve in response to a change in the actual price level while a change in aggregate quantity of real GDP demanded is represented by a movement along the aggregate demand curve in response to a change in the expected price level.
• C) A change in aggregate demand is represented by a shift of the aggregate demand curve in response to a change in a component of aggregate demand while a change in aggregate quantity of real GDP demanded is represented by a movement along the aggregate demand curve in response to a change in the price level.
• D) There is no difference between the two terms.

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