According to the AS-AD Model

question 11

Multiple Choice

According to the AS-AD model,

• A)the AS curve is always equal to potential GDP.
• B)the aggregate quantity demanded is typically greater than the aggregate quantity supplied, thereby leading to inflation.
• C)the equilibrium is where the AS curve crosses the AD curve but the amount of real GDP at this point is not always equal to potential GDP.
• D)changes in the amount of potential GDP is the only factor that shifts both the aggregate supply curve and the aggregate demand curve.
• E)the aggregate quantity supplied is typically greater than the aggregate quantity demanded, thereby leading to unemployment.

---

Definitions:

Necrotization

The process of tissue death within the body, where cells in the body die off in a localized area due to disease, injury, or lack of blood supply.

Staple Extractor

A tool designed to remove staples from documents or other materials.

Staples

Thin pieces of metal used to fasten sheets of paper together, inserted through the sheets and clinched over.

Antiseptic

An agent that will prevent the growth or arrest the development of microorganisms.