Figure 21-2

Multiple Choice

Figure 21-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.
-Refer to Figure 21-2. What is measured along the horizontal axis of the left-hand graph?

A) nominal output
B) real output
C) the opportunity cost of holding money
D) the quantity of money