In the AD/AS Model, the Aggregate Demand for Goods and Services

question 157

Multiple Choice

In the AD/AS model, the aggregate demand for goods and services is composed of the purchases made by

• A) households and foreigners (net exports).
• B) businesses, bondholders, and foreigners (net exports).
• C) businesses and governments.
• D) consumers, investors, governments, and foreigners (net exports).

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Definitions:

Adrenal Glands

Small glands located on top of each kidney; they produce hormones such as adrenaline and cortisol which help manage stress and other bodily functions.

Salty Tastes

One of the basic tastes, characterized by the presence of salt, often leading to enhancement of flavor in foods.

Corpus Callosum

The large band of neural fibers connecting the two hemispheres of the brain, facilitating interhemispheric communication.

Adrenal Gland

An endocrine organ located above the kidneys that produces hormones such as adrenaline and cortisol, which help regulate metabolism, stress response, and blood pressure.