FIGURE 21-3
-Refer to Figure 21-3. In this demand-determined model of the macro economy, the price level is
A) measured by Y2/0B.
B) measured by Y1Y2/AB.
C) increasing as the economy moves from E0 to E1.
D) assumed to be constant.
E) derived from the slope of the AE function.

Question

FIGURE 21-3
-Refer to Figure 21-3. In this demand-determined model of the macro economy, the price level is
A) measured by Y2/0B. 
B) measured by Y1Y2/AB. 
C) increasing as the economy moves from E0 to E1. 
D) assumed to be constant. 
E) derived from the slope of the AE function.

Quizplus · Accepted Answer

In this demand-determined model of the macro economy, the price level is assumed to be constant.

FIGURE 21-3 -Refer to Figure 21-3. in This Demand-Determined Model of the of the Macro