In the Aggregate Demand and Aggregate Supply Model

question 40

Multiple Choice

In the aggregate demand and aggregate supply model,

• A) the factors that cause the demand curves in both models to slope downward are the same.
• B) the factors that cause the supply curves in both models to slope upward are the same.
• C) the upward-sloping aggregate demand curve intersects the downward-sloping aggregate supply curve to determine the economy's price level and GDP.
• D) the upward-sloping aggregate supply curve intersects the downward-sloping aggregate demand curve to determine the economy's price level and GDP.
• E) the price level never changes even with shifts in aggregate demand and aggregate supply.

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Definitions:

Binding Agreement

A legally enforceable contract that obligates the parties involved to adhere to the terms outlined within the agreement.

Bilateral Contract

A contract involving two parties where each promises to perform an act in exchange for the other's act.

Unilateral Contract

A contract in which one party makes a promise that the other party can accept only through an action, not a promise.

Accept

To receive something willingly or to agree to a proposition or offer.