The aggregate demand curve shows the_______

  1. The aggregate demand curve shows the
    a. positive relationship between the level of spending and the level of real GDP.
    b. positive relationship between the price level and the quantity demanded of nominal GDP.
    c. inverse relationship between the price level and the quantity demanded of real GDP.
    d. inverse relationship between the price level and the quantity demanded of nominal GDP.
    e. positive relationship between the price level and the quantity demanded of real gross domestic product (GDP).

  2. If consumers decide to save a larger percentage of their income, it will be:
    a. beneficial in the short run because saving will rise.
    b. harmful in the long run because unemployment will increase.
    c. harmful in the long run because the price level will rise.
    d. harmful in the long run because aggregate supply will fall.
    e. beneficial in the long run because interest rates will fall.