In the Basic AD/AS Macro Model, Permanent Increases in Real

question 80

Multiple Choice

In the basic AD/AS macro model, permanent increases in real GDP are possible only if

• A)the economy's automatic stabilizers are allowed to operate.
• B)potential output is increasing.
• C)the correct fiscal policy is implemented.
• D)aggregate demand responds positively to demand shocks.
• E)the aggregate supply curve is vertical.

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Definitions:

Nature And Nurture

The debate concerning the relative importance of an individual's innate qualities (nature) versus personal experiences (nurture) in determining or causing differences in physical and behavioral traits.

Environmentally Adaptive

The ability of an organism or a system to adjust or change in response to environmental factors.

Reproductive Success

The success a living organism has in passing its genes to the next generation's gene pool.

Population Characteristics

Traits and features that describe the demographics, behaviors, and qualities of a specific group of individuals.