Question

Economists often use an economic model that reflects the total amount of goods and services required at all possible price levels during a specific period of time. Which term is most often used to describe the information contained in this model?

A. business cycle
B. market self-regulation
C. money demand curve
D. aggregate supply and demand

Answer 1

The answer is letter D.

Economists often use the aggregate supply and demand model to reflect the total amount of goods and services required at all possible price levels during a specific period. It reflects the overall price of foods and services in an economy for a given period and is often illustrated with the supply-demand curve. This shows the relationship between price levels and quantity of output that a particular firm is willing to provide to the general public.