The Labels for the Axes of the Aggregate Demand Graph

question 14

Multiple Choice

The labels for the axes of the aggregate demand graph should be

• A) quantity of a product on the vertical axis and the price of a product on the horizontal axis.
• B) price of a product on the vertical axis and quantity of a product on the horizontal axis.
• C) real domestic output on the vertical axis and the price level on the horizontal axis.
• D) real domestic output on the horizontal axis and the price level on the vertical axis.

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Definitions:

Revenue

Aggregate income a company secures from its sales of products or rendering of services in a given period.

Excise Tax

A tax imposed on specific goods, services, or activities to raise revenue or discourage their use.

Revenue

The total income generated by a business or organization from its normal business operations.

Supply Curve

A graphical representation showing the relationship between the quantity of goods suppliers are willing to produce and the price of those goods.