The model of aggregate demand and aggregate supply explains the relationship between
A)the price and quantity of a particular good.
B)unemployment and output.
C)wages and employment.
D)real GDP and the price level.

Question

Quizplus · Accepted Answer

The model of aggregate demand and aggregate supply explains the relationship between the level of real GDP (output) and the price level, as well as the factors that can cause changes in these variables. It does not directly address the relationship between other macroeconomic variables such as unemployment, wages, and employment, which are instead analyzed using other models or theories.

The Model of Aggregate Demand and Aggregate Supply Explains the Relationship