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Question
Which of the following is true about how the aggregate demand curve differs from the individualʹs demand curve?
A) The individualʹs demand curve shows the relationship between price and quantity demanded while the aggregate demand curve is not influenced by price.
B) For the individualʹs demand curve equilibrium is determined by the intersection of supply and demand while for the aggregate demand curve equilibrium is determined by the real balance effect.
C) The individualʹs demand curve is just for an individual while the aggregate demand curve looks at the entire circular flow of income.
D) The individualʹs demand curve will shift when there is a change in taxes while the aggregate demand curve will not.
Answer
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