In the Basic AD/AS Model,which of the Following Is a Defining

question 1

Multiple Choice

In the basic AD/AS model,which of the following is a defining assumption of the adjustment process that takes the economy from the short run to the long run?

• A)factor supplies are assumed to be varying
• B)technology used in production is endogenous
• C)the level of potential output is changing
• D)factor prices respond to output gaps
• E)firms cannot operate near their normal capacity

---

Definitions:

Carter Administration

Refers to the presidency of James Earl Carter, Jr., the 39th President of the United States, who served from 1977 to 1981, known for his commitments to human rights and energy conservation.

Foreign Policy

The strategies and decisions made by a country in relating to, interacting with, and managing affairs with other countries.

Islamic Orthodoxy

The adherence to the accepted doctrines and practices of Islam, following traditional beliefs and rituals.

Middle East

A region that encompasses Western Asia and Egypt, known for its strategic geopolitical significance and diverse cultures.