According to the AS-AD Model

question 36

Multiple Choice

According to the AS-AD model,

• A) the AS curve is always equal to potential GDP.
• B) the equilibrium is where the AS curve crosses the AD curve, but the amount of real GDP at this point is not always equal to potential GDP.
• C) a change in the amount of potential GDP is the only factor that shifts both the aggregate supply curve and the aggregate demand curve.
• D) the aggregate quantity demanded is typically greater than the aggregate quantity supplied, thereby leading to inflation.
• E) the aggregate quantity supplied is typically greater than the aggregate quantity demanded, thereby leading to unemployment.

---

Definitions:

Secondary Sexual Characteristics

Secondary sexual characteristics are features that appear during puberty which are not directly involved in reproduction but distinguish the two sexes, such as breast development in females and facial hair in males.

Adult Height

The final height an individual achieves after undergoing the growth phases of childhood and adolescence, influenced by genetics and environmental factors.

Sexual Reproduction

A biological process where organisms create offspring by combining genetic material from two different genders, leading to genetic diversity.

Physical Immaturity

Describes a stage where an individual's body has not yet reached full development or maturity.