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

question 58

Multiple Choice

Which of the following is a defining characteristic 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)factor prices are assumed to be constant
• D)firms cannot operate near their normal capacity
• E)the level of potential output fluctuates with the price level

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Definitions:

Pancreas

A gland in the digestive and endocrine system of vertebrates that produces enzymes for digestion and hormones such as insulin, which regulates blood sugar levels.

Insulin

A hormone produced by the pancreas that regulates glucose levels in the blood.

Basal Metabolic Rate

The amount of energy expended by a body at rest in a neutral environment, necessary to maintain basic bodily functions.

Appetite-Enhancing Center

A region in the brain, often associated with the hypothalamus, that stimulates the desire to eat.