Multiple Choice
In a graph that shows the aggregate supply and aggregate demand curves, what are the variables on the axes of the graph?
A) The price level measured by the implicit price deflator is on the horizontal axis and real GDP is on the vertical axis.
B) The price level measured by the consumer price index is on the vertical axis and real GDP is on the horizontal axis.
C) The price level measured by the implicit price deflator is on the vertical axis and real GDP is on the horizontal axis.
D) The price level measured by the implicit price deflator is on the vertical axis and employment is on the horizontal axis.
Correct Answer:
Verified
Correct Answer:
Verified
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