Register
The aggregate demand curve A. differs from individual demand curves in that the aggregate demand curve looks at the entire circular flow of income and product while the individual demand curve looks at
97,679 views
20 votes
20 votes
The aggregate demand curve A. differs from individual demand curves in that the aggregate demand curve looks at the entire circular flow of income and product while the individual demand curve looks at only one good. B. is like individual demand curves in that prices of other goods are held constant. C. differs from individual demand curves in that the aggregate demand curve is not downward sloping. D. is like individual demand curves in that income is constant.

User Igorshmigor
by
2.9k points

1 Answer

12 votes
12 votes

Answer:

A. differs from individual demand curves in that the aggregate demand curve looks at the entire circular flow of income and product while the individual demand curve looks at only one good.

Step-by-step explanation:

An aggregate demand curve is a graphical representation which represents the relationship between the total quantity of the output demanded which is measured as the real GDP and its price level which is measured as an implicit price deflator.

The aggregate demand curve looks at both the circular flow of the income as well as the product whereas the individual demand curve is responsible for only one, keeping the other constant.

Hence, the correct option is option (A).

User AllInOne
by
3.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Link Copied!