The AD,SRAS,and LRAS curves each show a relationship between which two economic variables?
A)The aggregate price level and output
B)The aggregate price level and the interest rate
C)Output and unemployment
D)Output and the interest rate

Question

Quizplus · Accepted Answer

The AD (aggregate demand) curve shows the relationship between the aggregate price level and output. The SRAS (short-run aggregate supply) curve shows the relationship between the aggregate price level and output in the short run. The LRAS (long-run aggregate supply) curve shows the relationship between the aggregate price level and potential output in the long run. Therefore, all three curves show a relationship between the aggregate price level and output.

The AD,SRAS,and LRAS Curves Each Show a Relationship Between Which