Unit 23 Flashcards
1
Q
Define aggregate.
A
Aggregate is the sum or total.
2
Q
Define aggregate demand.
A
Aggregate demand is the total of all demands or expenditures in the economy at any given price.
3
Q
What is the aggregate demand curve?
A
The aggregate demand curve shows the relationship between the price level and equilibrium national income. As the price level rises the equilibrium level of national income falls.
4
Q
Define domestic economy.
A
The economy of a single country.
