Introduction to Economics 2 Deneme Sınavı Sorusu #349934

What does aggregate demand curve show the relationship between?


Demand and price

 

Price and production

 

Price and inflation

 

Demand and supply

Inflation and investment


Yanıt Açıklaması:

The aggregate demand curve is the curve showing the relationship between the general price level and the level of production. In order to obtain the aggregate demand curve, we should examine how the quantity of production responds to the price level changes. In other words, we should find an answer for that question: “When prices increase, what is going to happen to the quantity of production? Increase, decrease or unchanged?”

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