Asked by Jacob Rosmarin on Jul 15, 2024
Verified
An aggregate demand curve can be drawn by:
A) shifting the 45-degree line.
B) letting changes in autonomous spending shift the aggregate expenditure line.
C) letting changes in the price level shift the aggregate expenditure line.
D) letting changes in the level of income shift the aggregate expenditure line.
E) letting changes in real GDP shift the aggregate expenditure line.
Aggregate Demand Curve
A graphical representation that shows the total quantity of goods and services that all households, businesses, and government are willing to purchase at each possible price level.
Autonomous Spending
Expenditures in an economy that do not vary with the level of income or production, such as government spending or investment.
- Gain insight into the connectivity and variances between the aggregate demand curve and the aggregate expenditure line, including the modifications triggered by diverse economic elements.
Verified Answer
RT
Raynald ThomasJul 17, 2024
Final Answer :
C
Explanation :
The aggregate demand curve can be drawn by letting changes in the price level shift the aggregate expenditure line. This reflects how total demand for goods and services in an economy varies with changes in the price level.
Learning Objectives
- Gain insight into the connectivity and variances between the aggregate demand curve and the aggregate expenditure line, including the modifications triggered by diverse economic elements.