Question

_____________ refers to what the households and firms are expected to spend on the purchase of different goods and services in the economy.

• A. Aggregate supply price
• B. Aggregate demand price
• C. Aggregate expenditure
• D. None of the above

Answer 1

Answer: (B)

Aggregate demand price

Aggregate demand price refers to the the maximum value of money which the households and firms expect to spend on the purchase of different goods and services for consumption and production purpose respectively in the economy.