In the macroeconomic model of aggregate supply and aggregate demand, quantity is:
A) the amount traded by all individual buyers and sellers in a market.
B) only influenced by changes in aggregate demand.
C) a measure of total output.
D) All of these are true.

Question

Quizplus · Accepted Answer

In the macroeconomic model of aggregate supply and aggregate demand, quantity is a measure of total output. It represents the total amount of goods and services produced and supplied in an economy. Option A is incorrect because quantity is not specific to any particular market; it refers to the economy as a whole. Option B is incorrect because changes in aggregate supply can also impact quantity. Therefore, the best choice is C.

In the Macroeconomic Model of Aggregate Supply and Aggregate Demand