Consider the Basic AD/AS Model

question 26

Multiple Choice

Consider the basic AD/AS model.Suppose firms are currently producing beyond their normal capacity.A change in AD leads to a relatively

• A)large change in price level and a large change in real GDP.
• B)large change in price level and a small change in real GDP.
• C)small change in price level and a large change in real GDP.
• D)small change in price level and a small change in real GDP.
• E)no change in both price and output.

---

Definitions:

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Identity

The qualities, beliefs, personality, looks, and/or expressions that make a person or group distinct from others.

Psychoanalytic Perspective

The psychoanalytic perspective is a theory in psychology that emphasizes unconscious processes and childhood experiences in shaping behavior and personality.

Unresolved Conflicts

Disputes or disagreements that have not been settled or resolved, often leading to ongoing tension or stress.