Aggregate Demand Curve Flashcards
What is the aggregate demand curve do?
Plots the demand for domestically produced goods and services at all price levels.
Plots the demand for domestically produced goods and services at all price levels.
What is the aggregate demand curve do?
What does real GDP measure?
Value of GDP for inflation and more accurate for changes in domestic demand than nominal GDP
Value of GDP for inflation and more accurate for changes in domestic demand than nominal GDP
What does real GDP measure?
Why is AD curve downward slopping?
Higher price levels correspond to lower demand for goods and services
Higher price levels correspond to lower demand for goods and services
Why is AD curve downward slopping?
What happens when there’s an increase in aggregate demand?
Shifts AD curve to the right
Shifts AD curve to the right
What happens when there’s an increase in aggregate demand?
What happens when there’s a decrease in aggregate demand?
Shifts AD curve to the left
Shifts AD curve to the left
What happens when there’s a decrease in aggregate demand?
