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.

---

Definitions:

Normally Distributed Random Variable

A variable that follows a normal distribution, characterized by its bell-shaped curve, where its mean, median, and mode coincide.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean.

Standard Normal Random Variable

A special case of the normal distribution with a mean of zero and a standard deviation of one.

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.