The aggregate demand curve:
a. shows the amount of real output that will be purchased at each possible price level.
b. is downsloping because production costs decline as real output increases.
c. shows the amount of expenditures required to induce the production of each possible level of real output.
d. is upsloping because a higher price level is necessary to make production profitable as production costs rise.
Answer: a. shows the amount of real output that will be purchased at each possible price level.
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