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.

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Definitions:

Sex-Stereotyped

Having attributes or characteristics traditionally assigned to a specific gender by society.

Group Opinion

The collective judgment or viewpoint shared among members of a group.

Conform

To change one’s behavior or beliefs in order to match those of others, often as a result of real or imagined group pressure.

Biological Agents

Microorganisms or toxins that can cause diseases or medical conditions in humans, animals, or plants.