An Important Merit of the AD-AS Model,compared to the Basic

question 116

Multiple Choice

An important merit of the AD-AS model,compared to the basic Keynesian model,is that it can explain how different types of economic shocks can simultaneously alter both the level of ___________ and also the ___________.

• A) output;inflation rate
• B) output;general price level
• C) output;unemployment rate
• D) output;exchange rate
• E) output;interest rate

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Definitions:

Incoming Stimulus

An external or internal event or signal that elicits a response from an organism or system.

Reversible And Ambiguous

Reversible and ambiguous refers to visual or linguistic stimuli that can be interpreted in multiple valid ways, often used in psychological studies of perception.

Figure And Background Relations

The perceptual grouping of visual elements into a 'figure' that stands out from a less distinct 'background', essential for object recognition.

Bottom-Up Processing

Bottom-Up Processing is a cognitive approach where perception starts with an incoming stimulus and builds up towards more complex representation, emphasizing sensory data's role in perception.