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- It specifies the amount of goods and services that will be purchased at all possible price levels. Consumer spending, investment, corporate and government expenditure, and net exports make up the aggregate demand. The aggregate demand curve is plotted with real output on the horizontal axis and the price level on the vertical axis.en.wikipedia.org/wiki/Aggregate_demand
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The general price level is a hypothetical measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set. Typically, the general price level is approximated with a daily … See more
Applicable indices are the consumer price index (CPI), Default Price Deflator, and the Producer Price Index.
Price indices not only affect the rate of inflation, but are also part of real output and productivity. See more• Economics portal
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• See more• McCulloch, James Huston (1 January 1982). Money and Inflation: A Monetarist Approach. Academic Press. ISBN 978-0-12-483051-6.
• See moreWikipedia text under CC-BY-SA license WEBThe vertical axis shows the price level, which measures the average price of all goods and services produced in the economy. In other words, the price level in the AD-AS model is the CPI or GDP Deflator. Remember …
WEBThe intersection of the aggregate supply and aggregate demand curves shows the equilibrium level of real GDP and the equilibrium price level in the economy. In this example, the equilibrium point occurs at point E, at …
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