When Looking at a Graph of Aggregate Demand, Which of the Following

question 59

Multiple Choice

When looking at a graph of aggregate demand, which of the following is correct?

• A)There are nominal variables on both the vertical and the horizontal axes.
• B)There are real variables on both the vertical and horizontal axes.
• C)The variable on the vertical axis is nominal; the variable on the horizontal axis is real.
• D)The variable on the vertical axis is real; the variable on the horizontal axis is nominal.

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Definitions:

Housing Development

Housing Development is the process of constructing a new residential area, which may include homes, apartments, and other infrastructure like parks and schools.

Profit-Maximizing

A strategy or process undertaken by a firm to yield the highest possible profit, often through adjusting output or pricing.

Damages

Compensation claimed or awarded in court for a loss or injury as a result of breach of contract or tort.

Entry Restrictions

Regulations or barriers that prevent new competitors from easily entering an industry or area of business.