The aggregate supply and aggregate demand model is used to explain:
A) how individual markets affect other markets.
B) how entire markets operate, not just each individual seller within a market.
C) how the market price is determined by all buyers and sellers interacting in a market.
D) how output, prices, and employment are tied together in a single economic equilibrium.

Question

Quizplus · Accepted Answer

The aggregate supply and aggregate demand model is used to explain how output, prices, and employment are tied together in a single economic equilibrium, representing the overall functioning of an entire market, rather than just individual sellers or buyers within that market.

The Aggregate Supply and Aggregate Demand Model Is Used to Explain