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.

---

Definitions:

Cultural Stereotype

Oversimplified and generalized opinions about the traits, behaviors, and characteristics of a particular cultural group.

U.S. Department of Labor

A federal agency responsible for promoting the welfare of job seekers, wage earners, and retirees in the United States.

Fair Labor Standards Act

United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.

Internship Programs

Structured experiences that offer practical work related to a learner's field of study or career interest, often part of educational curriculum.