In the aggregate demand/aggregate supply model, the vertical axis is labeled
A) aggregate price level.
B) consumption.
C) GDP.
D) consumption plus investment plus government spending.

Question

Quizplus · Accepted Answer

The vertical axis in the aggregate demand/aggregate supply model is labeled as the aggregate price level. This is because it represents the overall price level of all goods and services in the economy. It is measured by an index such as the consumer price index (CPI) or the producer price index (PPI).

In the Aggregate Demand/aggregate Supply Model, the Vertical Axis Is