The Aggregate Demand Curve Is Given By:
A) $\tilde { Y } _ { t } = \bar { a }$

question 63

Multiple Choice

The aggregate demand curve is given by:

• A) \(\tilde { Y } _ { t } = \bar { a }\)
• B) \(\tilde { Y } _ { t } = \bar { a } - \left( \pi _ { t } - \bar { \pi } \right)\)
• C) \(\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)\)
• D) \(\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \left( \pi _ { t } - \bar { \pi } \right)\).
• E) \(\tilde { Y } _ { t } = \bar { a } - \bar { b } \bar { m } \pi _ { t }\)

---

Definitions:

Marginal Revenue

The additional income received for selling one more unit of a good or service.

Profit-Maximizing Output

The level of production at which a company can achieve the maximum difference between total revenue and total costs, leading to the highest possible profit.

Market Price

The present cost at which a product or service is available for purchase or sale in the market.

Economic Profit

The total revenue of a business minus its explicit and implicit costs; represents additional wealth created by a company over and above its costs.