Question

The aggregate demand curve

A. is equivalent to GDP.

B. shows planned purchase rates of goods and services at various price levels.

C. is the total of all planned production for the economy.

D. is equivalent to the horizontal summation of all​ consumers' demand curves for all goods and services.

Answer 1

B. shows planned purchase rates of goods and services at various price levels.

Step-by-step explanation:

• The aggregate demand is the total demand for final goods and services in the economy over a given period of time. And is often distinguished as the effective demand curve. That is the demand for the GDP of the nation.

• As it specifies all the goods and the services that are to be purchased at all the possible levels. Hence this demand curve shows us the real output given on the horizontal axis. Thus the curve shows the quantity of the output that is demanded and the aggregate of the all price level.