The Reason Why the AS/AD Model Does Not Depend Upon

question 100

Multiple Choice

The reason why the AS/AD model does not depend upon the concepts of substitution and opportunity cost is that:

• A)in groups, people do not make the same choices as when they are alone.
• B)the AS/AD model considers total output. There are no goods to substitute.
• C)the AS/AD model considers the effects of other countries' decisions.
• D)other things remain constant in the AS/AD model.

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