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The short-run macroeconomic model is very similar to the standard model for markets. In what ways are these two models similar?
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The short-run macroeconomic model is very similar to the standard model for markets. In what ways are these two models similar?

User Sumesh
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9 votes

Answer:

Step-by-step explanation:

Slope of demand curve is negative and slope of supply curve is positive in both the models.

But labeling of axis is different in both the models. In the short-run macroeconomic model, y-axis represents the price level whereas x-axis represents the GDP.

While in the standard model for markets, y-axis shows the general price level whereas x-axis represents the output level.

User Matheus Azevedo
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