What are the variables on the vertical and horizontal axes of the aggregate supply and demand curve?
A) the price level and real output
B) real output and employment
C) unemployment and the inflation rate
D) inflation rate and the price level

Question

Quizplus · Accepted Answer

The vertical axis of the aggregate supply and demand curve represents the price level, while the horizontal axis represents real output. This is because these two variables are the key drivers of the economy and can be used to understand the behavior of both producers and consumers. While unemployment and inflation rate are important economic indicators, they are not represented on the aggregate supply and demand curve.

What Are the Variables on the Vertical and Horizontal Axes