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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
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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
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1 Answer

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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
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