For any given year the AD/AS model illustrates the relationship between:
A) the level of employment and real GDP (Y).
B) the GDP deflator (P) and the unemployment rate.
C) the GDP deflator (P) and real GDP (Y).
D) current real GDP (Y) and real GDP (Y) in the previous year.
Use the following Figure 5.1 to answer question 5:

Question

Quizplus · Accepted Answer

The AD/AS (Aggregate Demand/Aggregate Supply) model illustrates the relationship between the GDP deflator (P), which represents the price level, and real GDP (Y), which represents the output level in the economy. This model is used to analyze economic fluctuations, inflation, and growth.

For Any Given Year the AD/AS Model Illustrates the Relationship