The Aggregate Demand Curve Illustrates That, as the Price Level

question 183

Multiple Choice

The aggregate demand curve illustrates that, as the price level rises

• A) the quantity of real GDP demanded increases.
• B) the quantity of real GDP demanded decreases.
• C) the AD curve shifts rightward.
• D) the AD curve shifts leftward.

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Definitions:

Equilibrium Price

The price at which the quantity of goods suppliers are willing to sell equals the quantity consumers are willing to buy, leading to a balance of demand and supply.

Consumer Surplus

The variance between a consumer's maximum price readiness for a product or service and the real payment made.

Marginal Buyer

The consumer whose desire or need for a product is the least among all buyers, often determining the highest price they're willing to pay in a market.

Demand Curve

A chart that illustrates the connection between a good's price and the amount that consumers want to purchase.