All of the Following Are Assumptions Made by the Dynamic

question 164

Multiple Choice

All of the following are assumptions made by the dynamic model of aggregate demand and aggregate supply except

• A)aggregate demand and potential real GDP decrease continuously.
• B)the aggregate demand curve shifts to the right during most periods.
• C)potential real GDP increases continuously.
• D)the short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.

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Definitions:

Unbounded Energy

A term that might describe an inexhaustible or seemingly limitless vitality or enthusiasm.

Narcotics Use

The consumption of drugs that dull the senses and often have analgesic properties, potentially leading to addiction.

Overdose

The ingestion or application of a drug or substance in quantities greater than are recommended or generally practiced, leading to a severe adverse reaction.

Flashbacks

Sudden, intense recollections of past experiences or events, often traumatic, that feel as though they are happening in the present.