Which of the Following Is a Defining Assumption of the AD/AS

question 17

Multiple Choice

Which of the following is a defining assumption of the AD/AS macro model in the short run?

• A)Factor supplies are assumed to be flexible.
• B)Technology used in production is endogenous and variable.
• C)The level of potential output fluctuates with the price level.
• D)Factor prices are assumed to be exogenous.
• E)Firms cannot operate near their normal capacity.

Differentiate between nominal and real variables and their significance in economic analysis.

Recognize the long-run determinants of the price level and inflation rate.

Understand the concept of contraceptive methods and their respective failure rates.

Recognize the psychological and physiological factors affecting sexual activity and desire.

---

Definitions:

Driver Levels

Key factors or variables that significantly influence the performance or outcomes of a process or system.

Scenarios

Detailed and plausible accounts of how the future might unfold for a specific area of interest.

Analysis

The detailed examination of the elements or structure of something, typically as a basis for discussion or interpretation.

Planning

The process of making strategic decisions about setting goals, identifying actions to achieve the goals, and mobilizing resources to execute the actions.