The Aggregate Demand Curve Shows A(n)

question 238

Multiple Choice

The aggregate demand curve shows a(n)

• A)positive relationship between prices and quantities.
• B)inverse relationship between the price level and the aggregate quantity demanded.
• C)independent relationship between the price level and the aggregate quantity demanded.
• D)inverse relationship between the product price and the quantity of a good demandeD.

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Definitions:

GDP Deflator

An index that measures the level of prices of all new, domestically produced, final goods and services in an economy.

Wages

Payments made to employees based on the hours worked or the output produced; it is the price of labor.

Salaries

Fixed regular payments made by employers to employees, typically on a monthly or biweekly basis, in exchange for the professional services rendered.

GDP

The Gross Domestic Product calculates the full monetary or market price of all the finished commodities and amenities created within a country for a particular time window.