The _____ economic model demonstrates the short-run relationship between aggregate expenditures and real GDP, assuming that the price level is constant.
A) market price
B) macroeconomic money
C) aggregate supply and aggregate demand
D) aggregate expenditures

Question

Quizplus · Accepted Answer

The aggregate expenditures model focuses on the relationship between total spending (or aggregate expenditures) in the economy and the overall level of economic activity (real GDP) in the short run, under the assumption that prices remain constant.

The _____ Economic Model Demonstrates the Short-Run Relationship Between Aggregate