Which of the Following Is a Defining Assumption of the AD/AS

question 124

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

---

Definitions:

Distortions

Alterations or misrepresentations of perceptual input or cognitive processes, leading to inaccurate perceptions or interpretations.

Ideal Self

The version of oneself that they aspire to be, based on personal aspirations, goals, and standards.

Classical Conditioning

Learning to make an involuntary response to a stimulus other than the original, natural stimulus that normally produces the response.

Systematic Desensitization

A behavioral therapy technique used to reduce anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.