THE AGGREGATE-DEMAND CURVE

The aggregate-demand curve tells us the quantity of all goods and services demanded in the economy at any given price level. As Figure 3 illustrates, the aggregate-demand curve is downward sloping. This . means that, other things equal, a decrease in the economy’s overall level of prices (from, say, PI to P2) raises the quantity of goods and services demanded (from Y to Y. Conversely, an increase in the price level reduces the quantity of goods and services demanded.

Figure 3 The Aggregate-Demand Curve

 

 

 

 

[av_button label='Get Any Economics Assignment Solved for US$ 55' link='manually,http://economicskey.com/buy-now' link_target='' color='red' custom_bg='#444444' custom_font='#ffffff' size='large' position='center' icon_select='yes' icon='ue859' font='entypo-fontello']

Share This