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:

Signal Transduction

The process by which cells respond to external signals, converting them into a cellular response through a series of molecular events.

Proprioceptors

Sensory receptors located in muscles and tendons, providing information about body position and movement.

Chemoreceptors

Sensory receptors in the body that respond to chemical stimuli, such as taste or smell.

Mechanoreceptors

Sensory receptors responsible for converting mechanical pressures or changes in position into signals that can be interpreted by the nervous system.