The Aggregate Demand Curve Shows

question 20

Multiple Choice

The aggregate demand curve shows

• A) a direct relationship between changes in the price level and changes in real GDP.
• B) real GDP does not change as the price level changes.
• C) an inverse relationship between the price level and real GDP.
• D) an inverse relationship between changes in the price level and changes in nominal GDP.

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Definitions:

Ordered Pairs

Pairs of numbers used to represent positions on a graph, with the first number indicating horizontal position and the second number indicating vertical position.

Cubes

A cube is a three-dimensional solid object bounded by six square faces, or in mathematics, the result of multiplying a number by itself twice.

Ordered Pairs

Pairs of numbers used to represent points on a graph, with the first number indicating horizontal position and the second number vertical position.

Function

In mathematics, a relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.