Question

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

Answer 1

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.