A Diagram Shows the Quantity of Tomatoes on the Horizontal

question 596

Multiple Choice

A diagram shows the quantity of tomatoes on the horizontal axis and the quantity of coffee on the vertical axis. The quantity of tomatoes remains constant as the quantity of coffee increases. The graph of these data is

• A) a negatively sloped line
• B) a positively sloped line.
• C) a horizontal line.
• D) a vertical line.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, representing the value of all goods and services produced over a specific period, measured in constant prices.

Aggregate Demand Curve

A curve depicting the total demand for all goods and services in an economy at various price levels, assuming all other factors remain constant.

Short-Run Aggregate Supply Curve

A curve that shows the relationship between the price level and the quantity of goods and services supplied in the economy in the short term, assuming input costs remain constant.

Short-Run Equilibrium

The price level and real GDP that result when the aggregate demand curve intersects the short-run aggregate supply curve.