Consider the AD/AS Macro Model

question 51

Multiple Choice

Consider the AD/AS macro model.The main source of increases in material living standards over the long term is the

• A)maintenance of a continuous inflationary gap.
• B)continual avoidance of recessionary gaps.
• C)continuous outward shift of aggregate demand.
• D)continual increase in potential national income.
• E)positive slope of the aggregate supply curve.

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Definitions:

Monitoring

The act of observing, checking, or keeping a continuous record of a process or quality over time.

Regulatory

Pertaining to the imposition of rules, standards, and processes to control or manage behavior within a system.

Expressive

Demonstrating one's thoughts, feelings, or emotions openly and clearly through words, actions, or art.

Cognitive

Relating to the mental processes of perception, memory, judgment, and reasoning, as contrasted with emotional and volitional processes.