Consider the AD/AS Macro Model

question 19

Multiple Choice

Consider the AD/AS macro model.An important asymmetry in the behaviour of the AS curve is that

• A)prices are sticky but wages are not.
• B)positive output gaps can persist for a long time without causing increases in wages and prices,whereas negative output gaps lead to immediate reductions in wages and prices.
• C)negative output gaps can persist for a while without causing large decreases in wages and prices,whereas positive output gaps lead more quickly to increases in wages and prices.
• D)wages are very flexible in the downward direction,but not in the upward direction.
• E)wages and prices are equally sticky in both directions.

---

Definitions:

Older Adults

Individuals who are in the later stage of life, often defined as 65 years of age and older, experiencing various physiological, cognitive, and social changes.

Sleep Apnea

A condition affecting sleep that involves interruptions in breathing or instances of light breathing throughout the night.

Overweight

A condition characterized by having excess body weight or fat that may impair health, often measured in relation to height using the Body Mass Index (BMI) scale.

Narcolepsy

A long-lasting sleep ailment identified by intense sleepiness throughout the day and spontaneous sleep attacks.