a graphed line showing the relationship between the aggregate quantity demanded and the average of all prices as measured by the implicit GDP price deflator.
Remember that aggregate demand is composed of consumer spending, investment spending, government spending, and net export spending. Many things affect consumer spending. The main things are consumer...
Price level is graphed on the Y-axis and RGDP is graphed on the X-axis, both are increasing away from the origin. When price level is higher RGDP is lower, (stuff is more expensive so people buy...