The graph shown displays various price and output levels in an economy. What does the "Y" on the x-axis stand for?
A) Full employment level of output
B) Current level of GDP
C) Observed level of output
D) Future target goal for output

Question

The graph shown displays various price and output levels in an economy.  What does the "Y" on the x-axis stand for?
A) Full employment level of output 
B) Current level of GDP 
C) Observed level of output 
D) Future target goal for output

Quizplus · Accepted Answer

The "Y" on the x-axis typically represents the level of output or real GDP. In this context, it most likely represents the full employment level of output, which is the level of output that an economy can produce when all resources (labor, capital, etc.) are employed at their natural or normal levels. Therefore, choice A is the best option as it accurately represents what the "Y" on the x-axis most likely stands for in this context.

The Graph Shown Displays Various Price and Output Levels in an Economy