The aggregate demand curve represents what aspect of the economy?

The aggregate demand curve represents the total quantity of goods and services demanded across all levels of the economy at varying price levels. It illustrates the relationship between the overall price level in the economy and the total amount of spending on domestic goods and services.

This curve encompasses all components of demand in the economy, including consumption by households, investment by businesses, government spending, and net exports (exports minus imports). When the price level decreases, the quantity of goods and services demanded typically increases, and vice versa. Thus, the aggregate demand curve effectively captures the overall spending behavior of consumers and businesses in the domestic economy, making it a crucial tool for understanding economic activity and fluctuations.

In contrast, other options focus only on specific components or aspects of the economy, such as supply or government expenditures, and therefore do not encompass the broader concept of aggregate demand represented in option B.