The Aggregate Demand and Aggregate Supply Graph Has

question 33

Multiple Choice

The aggregate demand and aggregate supply graph has

• A)quantity of output on the horizontal axis.Output can be measured by the GDP deflator.
• B)quantity of output on the horizontal axis.Output can be measured by real GDP.
• C)quantity of output on the vertical axis.Output can be measured by the GDP deflator.
• D)quantity of output on the vertical axis.Output can be measured by real GDP.

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Definitions:

Imports

Goods or services brought into one country from another for sale.

Exports

Goods or services sent from one country to be sold in another country.

Consumption

The total value of all goods and services consumed by households, including durable goods, non-durable goods, and services.

Investment

The act of distributing funds or resources with the aim of earning an income or profit.