Multiple Choice
Which of the following statements is true?
A) Aggregate demand and aggregate supply determine the equilibrium price and quantity of a single good.
B) The aggregate demand curve indicates a positive relationship between the price level and GDP.
C) The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price and quantity.
D) The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price level and the equilibrium level of real GDP.
E) Other things equal, a downward shift of the aggregate demand curve implies that the economy enters an expansionary phase.
Correct Answer:
Verified
Correct Answer:
Verified
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