The aggregate supply-aggregate demand diagram relates various levels of
A)production of two different goods.
B)all prices as measured by the CPI and production as measured by real GDP.
C)imports and exports of goods against exchange rates.
D)the price and quantity of a particular good.

Question

Quizplus · Accepted Answer

The aggregate supply-aggregate demand diagram shows the relationship between all prices as measured by the CPI and production as measured by real GDP. It helps to understand the overall performance of an economy in terms of price and output level.

The Aggregate Supply-Aggregate Demand Diagram Relates Various Levels of