The Aggregate Demand Curve Differs from an Individual Demand Curve

question 268

Multiple Choice

The aggregate demand curve differs from an individual demand curve in that

• A) the aggregate demand curve may not slope down while an individual demand curve must always slope down.
• B) the aggregate demand curve looks at the entire circular flow of income and product, while an individual demand curve looks at one good, holding everything else constant.
• C) prices change along an individual demand curve but prices are held constant along an aggregate demand curve.
• D) the aggregate demand curve slopes up while an individual demand curve slopes down.

---

Definitions:

Output Effect

The impact on an organization's total output resulting from a change in price, affecting the quantity supplied or demanded.

Substitute Resource

A resource that can be used in place of another, often relevant in the context of production or environmental sustainability.

MRP Curve

The marginal revenue product curve, which shows the additional revenue generated by one additional unit of an input.

Imperfectly Competitive Market

A market structure in which participants have some control over the prices because not all conditions of perfect competition are met, such as monopolistic competition and oligopoly.