What are the variables on the vertical and horizontal axes of the aggregate supply and demand curve?
A)the price level and real output
B)real output and employment
C)employment and the inflation rate
D)the value of money and the price level

Question

Quizplus · Accepted Answer

The vertical axis of the aggregate supply and demand curve represents the price level, while the horizontal axis represents real output. Therefore, the correct variables are the price level and real output (Choice A). The other choices are not relevant for the variables represented by the curve.

What Are the Variables on the Vertical and Horizontal Axes