Question

The measurement of the Aggregate Supply
Curve takes into account all goods and
services and their corresponding average price
level. What is the label for the Y-Axis?
A. average income
B. maximum price level
C. average price level

Answer 1

Answer:

C; Average Price Level

Explanation:

Here, we want to get what is on the label of the y-axis

The aggregate supply curve is simply a plot of the average price level against the real GDP( gross domestic product)

From this definition, we can see that we have the average price level on the y-axis and we have the real GDP on the x-axis