The aggregate demand and aggregate supply graph has the
A)quantity of output on the horizontal axis.Output is best measured by real GDP.
B)quantity of output on the horizontal axis.Output is best measured by nominal GDP.
C)quantity of output on the vertical axis.Output is best measured by real GDP.
D)quantity of output on the vertical axis.Output is best measured by nominal GDP.

Question

Quizplus · Accepted Answer

The quantity of output is typically measured by real GDP, which takes into account changes in prices over time. The horizontal axis of the aggregate demand and aggregate supply graph typically represents the level of output, and it is best measured by real GDP.

The Aggregate Demand and Aggregate Supply Graph Has the