Question

True or false: one factor that affects the slope of the aggregate demand curve is the multiplier effect.

Answer 1

One factor that affects the slope of the aggregate demand curve is the multiplier effect is a "true" statement.

What is aggregate demand curve?

Aggregate demand would be a macroeconomic term which refers to the total consumption of goods and services in a given period at any price level.

Some key features regarding the aggregate demand curve?

• Since the two metrics are estimated in the same way, aggregate demand over time corresponds gross domestic product (GDP).
• GDP is the total quantity of products and services created by an economy, whereas aggregate demand is indeed the desire or demand for those goods.
• The aggregate demand as well as GDP rise or fall together as a result of using the same calculation methods.
• All consumer goods, capital equipment (factories & equipment), export markets, imports, & government spending programs are included in aggregate demand.
• As long as the variables trade for the same market value, they are all considered equal.

To know more about the aggregate demand curve, here

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