In the macroeconomic model of aggregate supply and aggregate demand, price is:
A) the measure of the value of all goods and services produced by the economy.
B) not a factor that is considered.
C) calculated as a weighted average of the prices of all goods and services.
D) None of these are true.

Question

Quizplus · Accepted Answer

In the macroeconomic model of aggregate supply and aggregate demand, price is calculated as a weighted average of the prices of all goods and services. This is because the model considers the overall price level in the economy, rather than the price of a single good or service.

In the Macroeconomic Model of Aggregate Supply and Aggregate Demand