Within the aggregate demand/aggregate supply framework,the quantity on the horizontal axis in the aggregate goods and services market represents the
A)total amount of government spending.
B)total real output (real GDP)of the economy.
C)total unemployment of the economy.
D)price level of the economy.

Question

Quizplus · Accepted Answer

The horizontal axis in the aggregate goods and services market represents the total real output (real GDP) of the economy. This means that it shows the amount of goods and services produced in the economy, which is measured as real GDP. Government spending, unemployment, and price level are factors that affect aggregate demand and aggregate supply, but they are not represented on the horizontal axis of the aggregate goods and services market.

Within the Aggregate Demand/aggregate Supply Framework,the Quantity on the Horizontal