In the Aggregate Demand and Aggregate Supply Model

question 85

Multiple Choice

In the aggregate demand and aggregate supply model,

• A) the factors that cause the individual demand curve to slope downward are the same as the factors that cause the aggregate demand curve to slope downward.
• B) the factors that cause the individual supply curve to slope upward are the same as the factors that cause the short-run aggregate supply curve to slope upward.
• C) the upward-sloping aggregate demand curve intersects the downward-sloping short-run aggregate supply curve to determine the economy's price level and GDP.
• D) the upward-sloping short-run aggregate supply curve intersects the downward-sloping aggregate demand curve to determine the economy's price level and GDP.

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Definitions:

Simplify

To reduce a mathematical expression to its simplest form by performing operations and combining like terms.

Evaluate

The process of calculating the value of an expression.

Simplify

To simplify an expression means to reduce it to its simplest form, by performing all possible operations and combining like terms.

Evaluate

To calculate the value of an expression by substituting variables with given numerical values and performing the operations in the expression.