The Aggregate Demand-Aggregate Supply (AD-AS) Model Is

question 51

Multiple Choice

The aggregate demand-aggregate supply (AD-AS) model is

• A) different from the IS-LM model because it does not show the long-run equilibrium.
• B) equivalent to the IS-LM model but focuses on the relationship between price and output rather than the interest rate and output.
• C) different from the IS-LM model because it does not show the short-run equilibrium.
• D) equivalent to the IS-LM model but focuses on the relationship between the interest rate and output rather than price and output.

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Definitions:

Inventory Management

The process of ordering, storing, tracking, and controlling inventory to ensure the right quantity of stock is available when needed.

Sales Forecast

An estimate of sales for a future period, often used for planning and managing business operations.

Master Budget

A comprehensive financial planning document that consolidates all individual budgets within an organization, projecting its overall financial activities.

Firm Forecast

A prediction or estimation about future business conditions that is relatively certain and stable.