In the Aggregate Demand/aggregate Supply (AD/AS) Model, the Vertical Axis

question 70

Multiple Choice

In the aggregate demand/aggregate supply (AD/AS) model, the vertical axis is labeled:

• A) aggregate price level.
• B) consumption.
• C) GDP.
• D) consumption plus investment plus government spending.

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Definitions:

Shape Constancy

The perceptual phenomenon whereby the perceived shape of an object remains constant even when its orientation to the viewer changes.

Rectangular Structure

A three-dimensional shape or building feature that is defined by having four sides and four angles, typically with two pairs of parallel and equal sides.

Proximity

Refers to the physical closeness between people, objects, or locations, influencing social interactions and relationships.

Grouping

The cognitive process of organizing stimuli or elements into groups or categories based on similarity, proximity, or other relational criteria.