The aggregate supply-aggregate demand diagram models
A)the behavior of individual consumers.
B)the behavior of individual firms.
C)the economy as a whole.
D)the interaction of producers and consumers for a particular good or service.

Question

Quizplus · Accepted Answer

The aggregate supply-aggregate demand diagram models the overall behavior of the economy as a whole, taking into account the interaction of all consumers and producers for all goods and services in the economy. It provides a macroeconomic view of the economy, rather than focusing on the behavior of individual consumers or firms or specific goods and services.

The Aggregate Supply-Aggregate Demand Diagram Models