144k views
0 votes
In addition to the price level, what does the aggregate demand and aggregate supply model focus on?

a. real gdp
b. nominal gdp
c. the real interest rate
d. stock prices

User ZzZombo
by
7.9k points

1 Answer

0 votes

Final answer:

Besides the price level, the aggregate demand and aggregate supply model primarily focuses on real GDP. This model assesses the total output produced in an economy adjusted for the price level, thus excluding nominal GDP, real interest rates, and stock prices.

Step-by-step explanation:

In addition to the price level, the aggregate demand and aggregate supply model focuses on real GDP. This model is used in macroeconomics to analyze various economic factors and conditions. The aggregate demand curve represents the total quantity of all goods and services that households, businesses, government, and foreign customers are willing and able to purchase at different price levels, while the aggregate supply curve shows the total production at different price levels. It is important to note that aggregate demand refers to the economic output adjusted for the price level, hence it refers to real GDP, not nominal GDP, real interest rate, or stock prices.

User Markus Kasten
by
8.2k points