(Solved): The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy use ...

The aggregate demand and aggregate supply model is a useful simplification of the macroeconomy used to explain short-run fluctuations in economic activity around its long-run trend. The horizontal axis of a diagram of the aggregate demand and aggregate supply curves measures which of the following? The price of a particular representative good produced in the economy An economy's price level The amount of a particular representative good produced in the economy An economy's real GDP Which of the following are reasons that the short-run aggregate supply curve slopes upward? Check all that apply. As the price level rises, firms pay higher wages for workers.