Aggregate Demand

question 35

Multiple Choice

Aggregate demand

• A)measures the amount of a nation's labour, capital, and technology that people are willing to buy.
• B)increases when the price level falls.
• C)is the relationship between the quantity of real GDP demanded and the price level.
• D)measures the amount of a nation's goods and services that people are willing to buy.
• E)increases when factor prices fall.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to buy.

Price Ceiling

A government-imposed limit on how high the price of a product or service can be charged in the market, aimed at protecting consumers from high prices.

Quantity Demanded

The amount of a product or service consumers are willing and able to purchase at a given price.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price within a certain time period.