Which Statement Best Describes the Aggregate Demand and Aggregate Supply

question 175

Multiple Choice

Which statement best describes the aggregate demand and aggregate supply model?

• A) Aggregate supply adjusts to equate aggregate demand at the prevailing market prices.
• B) The price level adjusts to equate aggregate demand to aggregate supply.
• C) Aggregate demand adjusts to equate aggregate supply at the prevailing market prices.
• D) Both aggregate demand and supply adjust to become equal at the prevailing market prices.

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Definitions:

Unconditional Positive Regard

An attitude of total acceptance and support toward another person, regardless of what the person says or does, often used in therapeutic settings.

Ideal Self

A person's conception of how they would like to be, embodying their goals, aspirations, and standards.

Self-image

An individual's conception of themselves, including perceptions of one’s appearance, abilities, and personality.

Sublimation

A defense mechanism where socially unacceptable impulses or idealizations are unconsciously transformed into socially acceptable actions or behavior.