Which Statement Best Describes the Aggregate Demand and Aggregate Supply

question 175

Multiple Choice

Which statement best describes the aggregate demand and aggregate supply model?

• A) Aggregate supply adjusts to equate aggregate demand at the prevailing market prices.
• B) The price level adjusts to equate aggregate demand to aggregate supply.
• C) Aggregate demand adjusts to equate aggregate supply at the prevailing market prices.
• D) Both aggregate demand and supply adjust to become equal at the prevailing market prices.

---

Definitions:

Acetylcholinesterase

An enzyme that catalyzes the breakdown of acetylcholine and some other choline esters that function as neurotransmitters.

Cholinergic Synapse

A synapse that uses acetylcholine as its neurotransmitter, facilitating communication between neurons in the nervous system.

Synaptic Cleft

The small gap between neurons at a synapse, across which neurotransmitters are released to transmit neuronal signals.

ACh

Acetylcholine (ACh) is a neurotransmitter involved in muscle activation, memory, and learning by transmitting signals between nerve cells.