In the Basic AD/AS Model,which of the Following Is a Defining

question 20

Multiple Choice

In the basic AD/AS model,which of the following is a defining assumption of the adjustment process that takes the economy from the short run to the long run?

• A)Factor supplies are assumed to be varying.
• B)Technology used in production is endogenous.
• C)The level of potential output is changing.
• D)Factor prices respond to output gaps.
• E)Firms cannot operate near their normal capacity.

---

Definitions:

Job Characteristics Model

A theory that suggests jobs can be designed to enhance employee motivation, satisfaction, and performance by incorporating five core job dimensions.

Flexible Working Hours

Gives individuals some amount of choice in scheduling their daily work hours.

Flextime

A flexible working arrangement that allows employees to choose their work hours within a set range, promoting work-life balance.

Vertical Loading

Increasing an employee's responsibilities and control over their work, often to enhance motivation and job satisfaction.