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.

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Definitions:

CEOs

Chief Executive Officers, the highest-ranking person in a company or other institution, ultimately responsible for making managerial decisions.

Strategic Planning

The process of defining a business's strategy or direction and making decisions on allocating resources to pursue this strategy.

Autocratic Leadership

A leadership style characterized by individual control over all decisions and little input from team members, often leading to quick decision-making but lower employee satisfaction.