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:

Odorants

Chemical substances that are perceived by the sense of smell.

Olfactory Receptors

Specialized nerve cells responsible for detecting odors in the environment and initiating the sense of smell.

Molecules

The smallest units of a chemical compound that can exist while retaining the identity of that compound.

Axons

Long, slender projections of nerve cells that transmit electrical impulses towards other neurons, muscle cells, or glands.