The short-Run Macroeconomic Model is very similar to the standard model for markets. In what ways are these two models different

Question

Keith_Richards [23]

4 years ago

8

The short-Run Macroeconomic Model is very similar to the standard model for markets. In what ways are these two models different

?
A) slope of demand curve
B) slope of supply curve
C) labeling of axis

Mathematics

1 answer:

Semmy [17] · Answer 1 · 2022-01-10T07:00:01+03:00

Answer: Option (c) is correct

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.