Which of the Following Is an Assumption Made by the Dynamic

question 216

Multiple Choice

Which of the following is an assumption made by the dynamic model of aggregate demand and aggregate supply?

• A)Aggregate demand and potential real GDP decrease continuously.
• B)The aggregate demand curve shifts to the right except during periods when workers and firms expect higher wages.
• C)Potential real GDP increases continuously during economic expansions and decreases continuously during economic recessions.
• 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:

Obturator Foramen

A large opening in the hip bone formed by the pubis and ischium that allows passage for nerves and blood vessels to the legs.

Severed

Cut or sliced off, often referring to a part of the body or to connections.

Distal Ends

Distal ends refer to the farthest points from the center or point of attachment in a body's structure.

Metacarpals

The bones located in the middle part of the human hand that connect the wrist to the fingers.