Question

The model of aggregate demand and aggregate supply a. is a straightforward extension of the model of supply and demand for a particular market, in which substitution of resources between markets is highlighted. b. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between markets to explain aggregate relationships. c. is different from the model of supply and demand for a particular market, in that we have to separate real and nominal variables in the aggregate model. d. is a straightforward extension of the model of supply and demand for a particular market, in which the interaction between real and nominal variables is highlighted.

Answer 1

b. is different from the model of supply and demand for a particular market, in that we cannot focus on the substitution of resources between markets to explain aggregate relationships

Step-by-step explanation:

Here The two models are different. But it shows the similar idea, also the variables that are determined are totally different. The individual markets should be equipped with the given sources while on the other hand the overall economy could be subsituted the resources inside the market

Therefore the option b is correct