The Aggregate Demand Curve

question 128

Multiple Choice

The aggregate demand curve:

• A) shows the level of real GDP purchased in the economy at different possible price levels during a period of time.
• B) shows the level of real GDP produced in the economy at different possible price levels during a period of time.
• C) shifts to the left whenever there is an increase in aggregate expenditures.
• D) slopes upward.

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Definitions:

Leg Warmers

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Short-Lived

Describing an event, phenomenon, or object that exists or lasts for a brief period of time.

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A feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it.

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A situation in which behavior that is rational for the individual can, when practiced by many people, lead to collective disaster.