In the Long-Run AS-AD Model

question 15

Multiple Choice

In the long-run AS-AD model,

• A) the position of the AD curve determines output
• B) the self-correcting mechanism of the economy is irrelevant
• C) the AS curve shifts leftward whenever the economy is growing
• D) the position of the AD curve determines the price level
• E) output fluctuates a great deal

---

Definitions:

Reference Group

A group that individuals use as a standard for evaluating themselves and their own behavior.

Political Group

An organization or collective of individuals that seeks to influence or participate in governance or policy-making processes.

Optimizing Productivity

The process of making the best or most effective use of resources to maximize output or efficiency.

Drowsy

A state of feeling abnormally sleepy or tired, often leading to a decline in alertness and performance.