Question

The amount of real domestic output that will be purchased at each possible price level is best shown by the:

Answer 1

The aggregate expenditure-output model in macroeconomics best shows the amount of real domestic output that will be purchased at each possible price level.

Step-by-step explanation:

The amount of real domestic output that will be purchased at each possible price level is best shown by the aggregate expenditure-output model in macroeconomics. This model demonstrates how total spending or aggregate expenditure increases as real GDP rises. The equilibrium occurs where aggregate expenditure is equal to national income, which represents the level of real GDP.