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