Question

Which of the following is a true statement?

A) The C + I + G + X curve has no relationship to the aggregate demand curve other than some of the variables that affect one curve also affect the other.

B) The C + I + G + X curve is used to derive the aggregate demand curve, but the

C + I + G + X curve is drawn for one price level while price levels vary along the aggregate demand curve.

C) The C + I + G + X curve is used to derive the aggregate demand curve, but the aggregate demand curve is drawn for one price level.

D) Both the C + I + G + X curve and the aggregate demand curve are drawn for one price level.

Answer

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