In addition to the price level,what does the aggregate demand and aggregate supply model focus on?
A) real GDP
B) nominal GDP
C) the real interest rate
D) stock prices

Question

Quizplus · Accepted Answer

The aggregate demand and aggregate supply model focuses on real GDP, which is the total value of all goods and services produced in an economy. This is because changes in the levels of aggregate demand and supply can affect the amount of goods and services produced, and therefore impact real GDP. The model does not focus on nominal GDP (which includes inflation), the real interest rate, or stock prices.

In Addition to the Price Level,what Does the Aggregate Demand