An Important Limitation of the AD-AS Model Is That It

question 12

Multiple Choice

An important limitation of the AD-AS model is that it predicts that a collapse in oil prices would result in a fall in the general price level.But the experience of many countries in the late 1980s clearly demonstrated that,when oil prices fall,the overall price level keeps ___________ but at a ___________ pace.That is,the ___________ falls,but not the price level.

• A) rising;slower;inflation rate
• B) rising;faster;inflation rate
• C) falling;slower;inflation rate
• D) rising;slower;unemployment rate
• E) falling;faster;inflation rate

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Definitions:

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that intelligence is not a single entity, but a combination of different types of intelligences including linguistic, logical-mathematical, and spatial, among others.

Gardner

Refers to Howard Gardner, a developmental psychologist known for his theory of multiple intelligences, which suggests that people have different kinds of intelligences.

Sternberg

An American psychologist named Robert Sternberg, known for his theory on the triarchic theory of intelligence.

Creativity

The ability to generate new ideas, solutions, or innovative approaches.