Aggregate Demand and Aggregate Supply
A) Explain why the economy sometimes goes into recession
B) Are drawn like traditional supply and demand curves only with the price level on the vertical axis
C) Are drawn like traditional supply and demand curves only with REAL GDP on the vertical axis
D) All of the above

Question

Quizplus · Accepted Answer

Aggregate demand and aggregate supply curves are similar to traditional supply and demand curves, but they have the price level on the vertical axis and real GDP on the horizontal axis.