The aggregate demand curve illustrates the relationship between ________ and the ________, holding constant all other factors that affect aggregate expenditure.

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An aggregate demand curve illustrates the relationship between the price level and the quantity of planned aggregate expenditure, holding constant all other factors that affect aggregate expenditure.

What is an aggregate demand curve?

Basically, a demand curve refers to the graph depicting the relationship between the price of a certain commodity and the quantity of that commodity that is demanded at that price. These curves can be used either for the price-quantity relationship for an individual consumer or for all consumers in a particular market.

Also, an aggregate demand means the measurement of total amount of demand for all finished goods and services produced in an economy. It is often expressed as the total amount of money exchanged for those goods and services at a specific price level and point in time.

In conclusion, the typical aggregate demand curve represents the total of consumption, investment, government purchases and net exports at each any price level in any period of time.

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