The Aggregate Demand and Aggregate Supply Graph Has the

question 14

Multiple Choice

The aggregate demand and aggregate supply graph has the

• A)quantity of output on the horizontal axis.Output is best measured by real GDP.
• B)quantity of output on the horizontal axis.Output is best measured by nominal GDP.
• C)quantity of output on the vertical axis.Output is best measured by real GDP.
• D)quantity of output on the vertical axis.Output is best measured by nominal GDP.

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Definitions:

Specific Product

A distinct good or service that is identifiable and distinct from others due to unique characteristics or features.

Increasing Marginal Opportunity Costs

The principle that as production of a good expands, the opportunity cost of producing an additional unit rises.

Discrimination

The practice of according individuals or groups inferior treatment in hiring, occupational access, education and training, promotion, wage rates, or working conditions even though they have the same abilities, education, skills, and work experience as other workers.

Production Possibilities Curve

The production possibilities curve is a graphical representation showing the maximum combination of goods or services that can be produced in a given time period, given available resources and technology.