Figure 16-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.

-Refer to Figure 16-2. What does Y represent on the horizontal axis of the right-hand graph?
A) the quantity of money
B) the rate of inflation
C) real output
D) nominal output

Question

Figure 16-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.
 
-Refer to Figure 16-2. What does Y represent on the horizontal axis of the right-hand graph?
A) the quantity of money 
B) the rate of inflation 
C) real output 
D) nominal output

Quizplus · Accepted Answer

Y represents real output on the horizontal axis of the right-hand graph.